Nvidia's AI Inflection Point

And, Lucid isn’t delivering enough.

Steven Lerner 23.Feb.2023

Today is Thursday, February 23, 2023.

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Nvidia's AI Inflection Point

Strong financial results for Nvidia (Nasdaq: NVDA) sent the technology stock up 8.89% in after-hours trading on Wednesday.

Financials: Nvidia reported earnings of 88 cents per share and revenue of $6.05 billion; both were better than expected.

Details: While both revenue and earnings were down year-over-year, revenue for the data center segment increased by 11%.

Quote: "AI is at an inflection point, setting up for broad adoption reaching into every industry. From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI.” - Jensen Huang, founder and CEO of Nvidia.

But: Revenue for gaming decreased by 46% year-over-year.

Final Thoughts: Huang also said that gaming revenue has recovered “from the post-pandemic downturn,” although it is still pretty bad. AI is a good buzzword right now, especially generative AI, and Nvidia is capitalizing. The stock is up 8% in the last 30 days.

Notables

Notable Earnings Today: Alibaba Group Holding (NYSE: BABA), Block (NYSE: SQ), Moderna (Nasdaq: MRNA), Carvana (NYSE: CVNA), Cheniere Energy (NYSEAMERICAN: LNG), Mercado Libre (Nasdaq: MELI), Domino's Pizza (NYSE: DPZ), Booking Holdings (Nasdaq: BKNG), Wayfair (NYSE: W), Warner Bros. Discovery (Nasdaq: WBD), Medical Properties Trust (NYSE: MPW), Wish (Nasdaq: WISH), Planet Fitness (NYSE: PLNT), Southwestern Energy (NYSE: SWN), Nikola (Nasdaq: NKLA), Beyond Meat (Nasdaq: BYND), Newmont Goldcorp (NYSE: NEM), Intuit (Nasdaq: INTU), YETI Holdings (NYSE: YETI), Farfetch (NYSE: FTCH), Kratos Defense and Security (Nasdaq: KTOS), Bath & Body Works (NYSE: BBWI), Rent-A-Center (Nasdaq: RCII), Sturm Ruger (NYSE: RGR), American Electric (Nasdaq: AEP), American Tower (NYSE: AMT), Autodesk (Nasdaq: ADSK), Bausch Health (NYSE: BHC), Brightcove (Nasdaq: BCOV), Cars.com (NYSE: CARS), CubeSmart (NYSE: CUBE), DISH Network (Nasdaq: DISH), Floor & Decor (NYSE: FND), Fox Factory Holding (Nasdaq: FOXF), Gaming and Leisure Properties (Nasdaq: GLPI), Genuine Parts (NYSE: GPC), Infinera (Nasdaq: INFN), Keurig Dr Pepper (Nasdaq: KDP), Live Nation (NYSE: LYV), MasTec (NYSE: MTZ), NetEase (Nasdaq: NTES), Nomad Foods (NYSE: NOMD), Opko Health (Nasdaq: OPK), Papa John's (Nasdaq: PZZA), PG&E (NYSE: PCG), Steven Madden (Nasdaq: SHOO), Universal Display (Nasdaq: OLED), VICI Properties (NYSE: VICI), WideOpenWest (NYSE: WOW).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: GDP (8:30 a.m. ET), Jobless Claims (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).

Lucid Isn’t Delivering Enough

Shares of Lucid Group (Nasdaq: LCID) dropped by 9.32% in after-hours trading on Wednesday after the electric car company posted mixed financial earnings.

Financials: Lucid reported a loss of 28 cents per share, which was better than expected. But revenue only hit $257 million, which was below estimates.

Details: The company produced 3,493 vehicles during the quarter and delivered 1,932 of them; investors were expecting more.

Final Thoughts: Lucid needs to ramp up its production and deliveries. The stock is down 58% in the last 12 months. It’s been a hard stock to trust.