Nvidia's shares close at 2.3 percent to reach new high
Date
11/21/2023 8:35:01 AM
(MENAFN) Nvidia's shares reached a new high, closing up 2.3 percent at USD504 on Monday, just ahead of the release of the company's fiscal third-quarter results expected on Tuesday. Analysts anticipate over 170 percent growth in revenue for this period.
The astonishing performance doesn't stop there; projections for Nvidia's fiscal fourth quarter, based on estimates from the London stock exchange Group (LSEG), suggest an even more impressive figure: nearly 200 percent growth.
As Wall Street heads into the Thanksgiving holiday, attention is keenly focused on Nvidia, a key player in this year's surge in artificial intelligence. In 2023 alone, Nvidia's stock price has soared by 245 percent, surpassing all other members of the S&P 500. The company's market capitalization now stands at USD1.2 trillion, surpassing Meta and Tesla.
However, any signals during the earnings call indicating a slowdown in enthusiasm for generative AI, a shift of significant customers to AMD's processors, or adverse effects from restrictions in China could pose challenges for a stock that has experienced remarkable growth.
“Expectations are high leading into NVDA’s FQ3′24 earnings call on Nov-21,” Bank of America analysts noted in a statement last week. They have given it a buy rating on the stock and stated that they “expect a beat/raise.”
Nevertheless, they highlighted that investor focus will be drawn to concerns regarding restrictions in China and increasing competition. Specifically, the rise of AMD in the generative AI market introduces a new element for Nvidia, which has traditionally dominated the AI graphics processing unit (GPU) market on its own.
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