Beyond the US presidential elections and the Federal Reserve meeting, the next date to mark on the calendar is November 20. that day Nvidia will announce its quarterly results. And whether the upward trend continues in the market will depend, in part, on whether the American company’s figures are disappointing or surprising. Before that key day, Nvidia surpassed Apple this Monday by market capitalization, becoming the largest listed company in the world. He was ahead of the apple signature this year at specific times in June, although then Microsoft was the first.
This won’t be the only historic milestone that experts expect Nvidia to mark. The truth is that there are already up to 13 investment banks that see the semiconductor company’s shares at 164 euros per share or more. Or what is the same, They see the value of Nvidia’s capitalization above 4 billion dollars. No company in the world has ever achieved such market value. This data also contrasts with the nine analysts who also agree that Apple can achieve this historical valuation. For the semiconductor company, there is even an investment firm that gives it a target price of $200. That is, more than 4.9 trillion dollars in market value (the maximum valuation for Apple is 4.5 trillion).
Nvidia’s dominance wherever it goes is more than clear. In fact, this Friday, November 8, Nvidia will join the Dow Jones to replace Intel to ensure “more representative exposure to the semiconductor industry“, as reported by the owner of the index. The shares of the first once again registered increases above 100% (180% specifically) compared to the collapse of more than 50% suffered by Intel. All of this while awaiting its quarterly accounts .
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Tesla, Alphabet, Meta, Amazon, Microsoft and Apple have already been held accountable to the market. At the moment, these six companies have improved their profits by 19% year-on-year on average, although the truth is that, if Apple is excluded from this equation, the percentage grows to 30%. The apple firm is the only one that has presented a profit below both estimates (39%) and the profits recorded in the same period of the previous year (36%).
Whether the stock market’s bullish streak continues depends, in part, on the results of technology. Although the guide has its own name: Nvidia. The results of this company have become one of the events highlighted each quarter, capable of altering the markets almost to the same level as the US elections themselves or the decisions of central banks.
For now, we will have to wait until November 20 for this key event, in which Experts expect Nvidia to present net profits of $17,495 million. If this figure is achieved, the semiconductor company would reap the highest profit figure in a quarter in its entire history and, in addition, it would mean improve by up to 89% the data for the same period of the previous year (9,243 million dollars). In fact, since the last quarter of 2023 (when ChatGPT appeared and an AI fever broke out), Nvidia’s data has continued to exceed market estimates (see chart).
“We expect Nvidia to continue to perform well across all segments and strong PC gaming demand to be a strong revenue driver for the company, offsetting OEMs that are in secular decline. We expect the data center segment to grow strongly as hyperscale customers continue to adopt GPU-accelerated learning [unidades de procesamiento gráfico] to process large data sets. We are also encouraged by the strength of the automotive and business segments, although the strong adoption of autonomous driving in the market remains to be seen. We foresee a significant rise in stocks, which drives our overweight rating,” they argue from JP Morgan while waiting to know the official accounts.
For 2024 as a whole, the net profit figure is expected to rise to the 68,616 million dollars (144% more than the already historic figure for 2023). And, in just two years, analysts expect the company to raise its profit figure above $100 billion, becoming one of the five companies in the world that would reap those benefits in 2026.
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