Nvidia Shares Rise On Forecast Of Strong Results Driven By AI
The shares of Nvidia (NVDA) jumped higher as the expectations grow that the chip maker's results will be strong. The main reason behind these positive expectations is that Nvidia has been making early investments in the AI field, which will likely help the company to have an early-mover advantage.
The field of AI is booming, and at the bottom of this field is the need for GPUs and other similar chips. In the GPU market, Nvidia holds a strong foothold which means that the company can also benefit the most from the AI boom.
In the last session, the share of Nvidia clocked an all-time high, only to go down by 2.8%. But despite the quick retreatment, the NVIDIA stock is still sitting at a very high level.
Nvidia Stock Up By 13%
If we look at the market, the majority of the chips that are used in AI companies, such as ChatGPT, are manufactured by Nvidia. That's one of the major reasons why the Nvidia stock gained around 13% in the last few days.
In addition, the overall value of Nvidia for the year 2023 has already tripled, which highlights that the bullish pressure is really intense.
According to Russ Mould from AJ Bell Investment, the odds are really high as everything is riding on the final results. So if the Nvidia results are not up to the mark, it would lead to a reversal from the record highs.
Wall Street is forecasting Nvidia to record revenue of around $12.61 billion during the 3rd quarter. When compared with the past, that would be a jump of almost 112.6%.
In the month of May, the market value of Nvidia was sitting at an astonishing $1 trillion, which highlights that the AI boom is really helping the tech company. Looking ahead, there's a high chance that the Nvidia numbers will be what's expected by the market players.