Nvidia's “Supply Constraints”

And, Snowflake’s “obsessive drive.”

November 21, 2024

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Today is Thursday, November 21, 2024.

The Early Bird Index today is 81.12

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Nvidia's “Supply Constraints”

Despite posting better-than-expected financial results, Nvidia (Nasdaq: NVDA) fell by 2.53% in after-hours trading on Wednesday due to issues with its GPUs (graphics processing units).

Financials: Nvidia reported earnings of 81 cents per share in the past quarter and revenue of $35.1 billion; both were better than expected.

Powering the Story: On Wednesday, Nvidia warned that the Hopper and Blackwell GPUs have certain “supply constraints,” and the demand for Blackwell is expected to exceed supply for the next few quarters.

Early Bird’s Nest Egg Gains: Blackwell is crucial to Nvidia's future as it represents the company's next-generation GPU platform designed to power advanced AI and computing applications. Nvidia has already faced delays in Blackwell's launch due to design flaws.

Final Thoughts: Before these results, Nvidia’s stock was up 202% this year.

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Notables

Notable Earnings Today: Deere & Company (NYSE: DE), Intuit (Nasdaq: INTU), Gap (NYSE: GAP), BJ's Wholesale (NYSE: BJ), Ross Stores (Nasdaq: ROST), Warner Music Group (Nasdaq: WMG), Vestis (NYSE: VSTS), Elastic (NYSE: ESTC), Copart (Nasdaq: CPRT), UGI Corp (NYSE: UGI), Shoe Carnival (Nasdaq: SCVL), KE Holdings (NYSE: BEKE), Atkore International (NYSE: ATKR), Baidu (Nasdaq: BIDU), iQIYI (Nasdaq: IQ), Nano-X Imaging (Nasdaq: NNOX), Natural Grocers by Vitamin Cottage (NYSE: NGVC), NetApp (Nasdaq: NTAP), PDD (Nasdaq: PDD).

Notable IPOs Today: Brazil Potash Corp. (NYSE: GRO), CO2 Energy Transition Corp. Unit (Nasdaq: NOEMU).

Notable Equity Crowdfunding Campaigns Ending Today: Clarity Consulting Corporation (Netcapital), LEXI (Republic).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Philly Fed Employment (8:30 a.m. ET), Existing Home Sales (10:00 a.m. ET), United States Leading Index (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Snowflake’s “Obsessive Drive”

Snowflake (NYSE: SNOW) jumped 19.81% in after-hours trading on Wednesday after the cloud data storage company posted a strong financial earnings update.

Financials: Snowflake reported earnings of 20 cents per share in the past quarter and revenue of $942.1 million; both were better than expected.

Quote: “Our obsessive drive to produce product cohesion and ease of use has built Snowflake into the easiest and most cost effective enterprise data platform.” -  CEO Sridhar Ramaswamy.

Also: Snowflake also announced a partnership with the AI company Anthropic and that it acquired the data platform Datavolo.

Final Thoughts: These results mark a big turnaround for Snowflake, which had been down 31% this year.

Palo Alto Networks Reports Weak Guidance

Palo Alto Networks (Nasdaq: PANW) posted good financial earnings results and still declined by 4.76% in after-hours trading on Wednesday.

Financials: Palo Alto Networks reported earnings of $1.56 per share in the past quarter and revenue of $2.1 billion; both were better than expected.

Powering the Story: The company projects revenue in the current quarter to be between $2.22 billion to $2.25 billion, but investors had higher hopes.

Final Thoughts: Palo Alto Networks was up 35.99% this year before these results.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.