US semiconductor giant Nvidia announced its financial results for the May-July 2024 period on the 28th, reporting sales of 30.04 billion dollars (about 4.3 trillion yen), 2.2 times higher than the same period last year, and net profit of 16.599 billion dollars, 2.7 times higher. Demand for semiconductors for artificial intelligence (AI) was strong, leading to record quarterly sales and net profits. Sales and profits also exceeded market expectations. Sales to data centers, which handle data processing for generative AI, increased 2.5-fold to approximately $26.3 billion. “We delivered record revenue as we advance the adoption of generative AI in data centers around the world,” CEO Jensen Huang said in a statement. The company forecasts that sales will grow further to about $32.5 billion for the August-October 2024 fiscal year. Nvidia is said to have around 80% of the global market share of graphic processing units (GPUs), which are used in the development of generative AI and data processing. Nvidia’s performance suggests future growth potential for AI-related businesses and is expected to have a major impact on stock prices in each country, drawing attention from investors around the world, including in Japan and the United States. 2024/08/29 05:46 Yomiuri Shimbun Online *Related thread NY stocks hit record highs every day while waiting for NVIDIA’s financial results [Flea Market★].
>>1 What you need to be careful of Nvidia, Microsoft, Apple, and many other American companies are seeing increased revenue and profits The American economy is doing great, corporate fundamentals are strong, and perfect financial results are breaking all-time highs But speculators and hedges rarely pay attention to the performance of these companies, and they buy and sell stocks depending on their mood at the time So be careful, because even if a company’s performance is good, the stock price can still crash.
The reason why NVIDIA has become so popular is because it has become clear that its flagship product, the GPU (graphics processing unit) chip, is best suited for AI processing, and it has attracted the attention of companies around the world and has become highly sought after.
Are expectations so high that the market is pessimistic even though the financial results aren’t bad? The Nikkei is also quick to react, so it will probably go down today.
If NV’s earnings, which exceeded market consensus, are causing a crash, then other semiconductor-related stocks that have been rising on the bandwagon are bound to crash as well.
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