Nvidia's All-Time High Stock
Photo by Nana Dua / Unsplash

Nvidia's All-Time High Stock

Plus, Snowflake's troubling outlook.

Steven Lerner
Steven Lerner

Today is Thursday, May 25, 2023.

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Nvidia's All-Time High Stock

Nvidia (Nasdaq: NVDA) surged by 24.63% in after-hours trading on Wednesday thanks to great financial results, allowing the stock to hit an all-time high in price.

Financials: Nvidia reported earnings of $1.09 per share in the past quarter and revenue of $7.19 billion; both were better than expected.

Details: Revenue for the data center business reached a record $4.28 billion, up 14% year-over-year. Revenue for the automotive business jumped 114%. And Nvidia expects total company revenue to hit $11 billion in the current quarter.

Quote: “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI. A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.” - Jensen Huang, founder and CEO of NVIDIA.

But: Revenue for the gaming unit dropped 38% year-over-year. In fact, overall company revenue is actually down 13%.

Stock Price: Nvidia’s stock price is already up 113% this year. Other semiconductor stocks also got a bump thanks to Nvidia's results on Wednesday.

Final Thoughts: Nvidia is benefiting from 2023’s AI moment. Semiconductors are crucial to AI, and that’s where the company excels. But can the stock continue to hit new highs?


Notable Earnings Today: Dollar Tree (Nasdaq: DLTR), Best Buy (NYSE: BBY), Costco Wholesale (Nasdaq: COST), Autodesk (Nasdaq: ADSK), Medtronic (NYSE: MDT), Ulta Beauty (Nasdaq: ULTA), Toronto-Dominion Bank (NYSE: TD), Marvell Technology (Nasdaq: MRVL), Canadian Imperial Bank of Commerce (NYSE: CM), Workday (Nasdaq: WDAY), Burlington Stores (NYSE: BURL), Deckers Outdoor (NYSE: DECK), Ralph Lauren (NYSE: RL), Gap (NYSE: GPS), Build-A-Bear Workshop (NYSE: BBW), RH (NYSE: RH), Titan Machinery (Nasdaq: TITN), Domo (Nasdaq: DOMO), Royal Bank of Canada (NYSE: RY), Silvercorp Metals (NYSE American: SVM), 23andMe (Nasdaq: ME), Genesco (NYSE: GCO), Lions Gate Entertainment (NYSE: LGF.A), NetEase (Nasdaq: NTES), Weibo (Nasdaq: WB).

Notable IPOs Today: ATS Corporation (NYSE: ATS), Inflection Point Acquisition Corp. II Unit (Nasdaq: IPXXU), Chijet Motor Company, Inc. Ordinary Shares (Nasdaq: CJET), Azitra Inc (NYSE American: AZTR), Global X Funds (NYSE Arca: NTRL).

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), Pending Home Sales (10:00 a.m. ET).

Snowflake's Troubling Outlook

Close up of damaged cell smartphone with lettering "Error 404"
Photo by Kostiantyn Li / Unsplash

Despite posting good financial results, shares of Snowflake (NYSE: SNOW) dropped by 12.64% in after-hours trading on Wednesday.

Financials: Snowflake reported earnings of 15 cents per share in the past quarter and revenue of $623.6 million; both were better than expected. Revenue is up 48%.

But: Snowflake is projecting revenue growth between 33% to 34% in the current quarter, which was lower than anticipated.

Final Thoughts: Snowflake, up 30% in 2023, has a troubling outlook for the rest of the year.

American Eagle Outfitters Has a Bad Forecast

American Eagle Outfitters (NYSE: AEO) declined by 20.8% in after-hours trading on Wednesday due to the retailer posting mixed financial results.

Final Thoughts: The company’s forecast for the rest of the year also disappointed investors. American Eagle Outfitters is down 16% this year as the retail sector struggles due to consumer spending concerns.

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