Leading up to Nvidia’s Q4 2024 earnings call on February 22nd, the stock witnessed a significant upsurge. Following the call, there was a minor pullback as the stock adjusted downwards, coming off the highs from the earnings announcement. I’ll provide a detailed analysis of the call in a subsequent post. For now, here’s a quick recap: Nvidia is witnessing further growth in its Data Center business, with Jensen Huang dubbing data centers as the AI era’s “factories,” drawing a parallel with the transformative factories of the industrial revolution. Additionally, Nvidia has been capturing growing interest in the autonomous driving market, with nearly all key players in the sector opting for Nvidia’s technology for training their models. The emergence of OpenAI’s Sora, alongside a surge in AI-driven startups and the expanding use of AI in big pharma (with notable firms like Recursion Pharma leading the charge), points to a burgeoning demand for more powerful accelerated computing solutions. This increasing demand is outpacing supply, stirring a wave of investor concern about Nvidia’s future trajectory. This in addition to lack of pressence in China and all the restrictions tha have leterally hultted nvidias growth in the east may shed light on the stock’s brief decline pre-earnings call.
After the earnings announcement, Nvidia experienced a significant surge, with a dramatic pre-market movement exceeding $100. This remarkable uptick highlighted an opportunity for investors to engage with Nvidia’s stock post-earnings, a move that appears to be strategically sound. Nvidia soared to a new all-time high of $820, marking its journey not as a steady climb but as a volatile path characterized by rapid ascents and sharp declines.
As of February 23rd, 2024, Nvidia’s stock continues to deliver a rollercoaster experience. Market participants are divided in their outlooks, with some anticipating the stock will stabilize around $825, while others are optimistic about it surpassing this threshold. This ongoing volatility underscores the high stakes and speculative nature surrounding Nvidia’s stock in the aftermath of its earnings report.
Well I am here for the ride. In Jensen we trust.
