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Created Date: November 19, 2024 12:04
World markets focused on the financial statements that technology giant Nvidia will announce after the markets close on Wednesday. The third quarter revenues of the company, which briefly became the most valuable company by surpassing Apple in November, are expected to break a record. Experts are of the opinion that a new rally may begin in global markets with these results.
Global markets are focused on the balance sheet to be announced by the US technology company Nvidia. The company will announce its Q3 results after markets close on Wednesday. Following the recent downturn in the technology sector as the impact of the US elections wears off, Nvidia’s results are expected to play a significant role in shaping the market for the rest of the year.
A RECORD IS EXPECTED
According to Visible Alpha, Wall Street analysts expect the chipmaker’s revenue to rise 84% from a year earlier to $33.28 billion, with net earnings to $17.45 billion (37 cents per share), down from the previous year’s result of $9.24 billion (37 cents per share). 70 cents per head) is expected to come out. Data company Zacks forecast reveals that total revenue is expected to increase 81% on an annual basis to $32.8 billion and earnings per share are expected to increase 85% on an annual basis to $0.74.
ARTIFICIAL INTELLIGENCE MADNESS
Nvidia’s rise grew in parallel with the artificial intelligence craze. With ChatGPT, the artificial intelligence program launched by Open AI company, creating a revolution, artificial intelligence programs are now used in every sector, from finance to education, from art to the service sector, from informatics to human resources. Many smart vehicles such as automobiles and mobile devices have become compatible with artificial intelligence. Not only Open AI, but many companies such as Google, Twitter, Apple have launched their own programs. This trend has enabled the tremendous growth of technology company Nvidia.
IT BECAME THE LARGEST COMPANY IN THE WORLD
Nvidia, which has made a name for itself in the technology world with its graphics chips for games, is a technology company that produces chips for processors that support artificial intelligence. Nvidia shares have grown by more than 2,700 percent in the last five years and have increased by nearly 200 percent since the beginning of the year. Following the US Presidential Elections won by Donald Trump, the shares of the US company increased by another 2.2 percent and Nvidia’s value reached 3.65 trillion dollars. The company surpassed Apple and became the largest company in the world.
After the election, as Trump’s influence faded, the shares of technology companies traded slightly. While Nvidia’s market size, which is traded on New York’s Nasdaq index, was 3.44 trillion dollars on Tuesday, Apple’s market size was 3.45 trillion dollars. Nvidia’s quarterly results are expected to start a new rally. On the other hand, the fortune of Jensen Huang, a Taiwanese-American businessman who is the founder and CEO of the company, is around 122 billion dollars.
Nvidia CEO Jensen Huang
THE IMPORTANCE OF TECHNOLOGY SHARES
“Nvidia has become the market’s biggest heavyweight, with both its market cap and a rising presence in artificial intelligence,” independent analyst Stephen Innes told AFP.
“Quarterly results will either crown AI as the undisputed king or trigger a dramatic rethink of the sector’s sky-high valuations,” Innes said of Nvidia, which is up nearly 800 percent in the past year. Nvidia’s results will likely drive broader tech market sentiment and and will highlight its important role as a pioneer for AI-related stocks,” he added.
Source: bigpara.hurriyet.com.tr
