Big waves
Yesterday, we already wrote about how Nvidia’s management came up with brutal expectations in its latest quick report. We already knew that the development of artificial intelligence will require huge computing capacity and therefore a lot of hardware, and semiconductor manufacturers such as Nvidia can benefit from this, and analysts have largely included this in their expectations, but with what the company management came out, it is very strong:
In the financial quarter that ends at the end of July, the revenue could be 11 billion dollars, while analysts had expected an average of 7.2 billion dollars. In other words, the company management announced a figure 53 percent higher than expected.
“We’re seeing incredible orders to transition data centers around the world,” CEO Jensen Huang told analysts on a conference call following the flash report. According to Huang, data center infrastructure will be upgraded to the tune of trillions of dollars to handle so-called accelerated computing, which will enable generative AI tools like ChatGPT to run.
The announcement by Nvidia’s management not only moved the company’s share price, but also that of hardware and software manufacturers, and even affected the leading American stock indexes. We show the stock market effects:
Hardware
Nvidia’s share price jumped 24 percent yesterday, the company’s market value increased by 184 billion dollars only yesterday, with a value of 939 billion dollars, it came very close to being among the companies worth a trillion dollars. This year alone, Nvidia’s share price rose by 160 percent.
Nvidia’s big announcement naturally also had a big impact on the price of other sector peers, AMD rallied 11 percent, and its price has already risen by 87 percent this year.
Broadcom’s share price shot up by 7 percent to a new historic high, and the semiconductor manufacturer’s share price has already risen by 30 percent this year.
The price of another big rival, Intel, fell by 6 percent, and this year the price is only up 4 percent. At Intel, investors fear that the company will lag behind its peers in the competition.
The price of a smaller semiconductor manufacturer, Monolithic Power Systems, jumped 17 percent yesterday following Nvidia’s announcement, and this year the stock has already rallied 38 percent.
The share price of Arista Networks, which manufactures the data transmission equipment required for data centers and cloud-based services infrastructure, jumped 11 percent yesterday, and has risen by 29 percent this year.
Software
The Nvidia story moved the shares of not only hardware but also software manufacturers, among the big ones, the price of Microsoft rose by 3.9 percent, this year it is already up 36 percent.
and Alphabet’s share price rose by 2.2 percent, and this year it has already rallied 40 percent,
Oracle went down 6 percent yesterday, this year it has already risen 28 percent.
Adobe’s share price rallied 7 percent, this year it is already up 17 percent.
But the shares of smaller companies, such as Synopsys, also went up a lot, here the increase was 10 percent, at the same time, the price rose by 36 percent this year.
Indexes
How big waves the Nvidia story made is clearly shown by how the leading American benchmarks performed yesterday. While the Dow Jones fell 0.1 percent yesterday
the S&P 500, which includes large tech companies and Nvidia, rose 0.9 percent,
and the tech-heavy Nasdaq index rallied 1.7 percent.
Nvidia also made moves in Asia, the value of the Taiwanese benchmark, which also includes tech stocks, rose by 1.3 percent.
Cover image: Digital Vision., Getty Images
