Zhitong Finance learned that most of the financial reports of the world\’s largest technology companies brought good news.
There is currently only one piece missing from the performance section of the technology giants: NVIDIA (NVDA.US).
The company dominates the field of chips that do the heavy lifting for artificial intelligence computing, making it a focal point for a market attracted by the emerging technology.
The company won\’t report earnings until May 22.
Prior to this, published data showed healthy growth in corporate profits. Demand for artificial intelligence tools boosted sales of cloud computing services. There are signs that corporate spending on artificial intelligence equipment will continue to increase.
Among Nvidia\’s largest customers, Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL) have all said that capital expenditures will maintain the current pace or increase spending this year. .
Mike Bailey, director of research at Fulton Breakefield Broenniman LLC, said on Friday: \”You\’re going to see a lot of chip buyers coming in. Say we\’ve bought a lot. We\’re still buying more.\”
The question for Nvidia is: Is this enough? Nvidia shares have rebounded since April 19, when the artificial intelligence hardware maker plunged ahead of the big tech company\’s first week of earnings.
The stock has gained 20% since then, but is still down about 3% from its peak in March.
With shares of other AI hardware makers falling after strong earnings reports, it\’s clear expectations are high.
Although its competitor, chipmaker AMD (AMD.US), raised its sales forecast for artificial intelligence accelerators this year from US$3.5 billion to US$4 billion, the company still fell nearly 9% on May 1.
Shares of server maker Supercomputer (SMCI), which has risen more than 190% this year, fell 14% after the company reported earnings. Although its guidance for revenue and profit far exceeded analysts\’ average expectations.
With about 80% of the companies in the S&P 500 having reported earnings, profits from technology and communications services companies are beating expectations at an alarming rate.
Data show that about 90% of technology and communication services companies\’ earnings exceeded expectations, much higher than the benchmark index\’s average of 79%.
The problem is that after pushing the technology-heavy Nasdaq 100 index up more than 35% in the past 12 months, it is difficult for these results to have an impact on the stock market.
Judging from the stock price trends the day after the earnings report was released, these two sectors ranked at the bottom among the major sectors of the S&P 500 Index.
The average decline in technology stocks was about 1.5%. The average decline in communications stocks was 2.7%.
However, Solita Marcelli, chief investment officer of the Americas at UBS Financial Services, believes that artificial intelligence computing stocks are still attractive. Microsoft, Alphabet, Meta and Amazon are expected to spend more than $200 billion in capital expenditures this year. This is $20 billion higher than the previous estimate. Dollar.
Marcelli said: We are encouraged by the many positives emerging from technology fundamentals during the first-quarter earnings season, which in our view will continue to support investments in generative artificial intelligence.
The U.S. stock market has too much appetite. Will Nvidia’s performance be difficult to support its stock price?
Zhitong Finance learned that most of the financial reports of the world’s largest technology companies brought good news.
Like (0)
Apple reportedly developing data center AI chips
Previous
May 7, 2024 4:02 pm