You quarterly results from the Nvidia Corp. (NVDA) ruled the market this Thursday (25). In addition to beating the profit and revenue consensus, the company delivered a sales outlook for the next quarter that is 50% higher than the market expected.
This melting pot of elements, heated by the wave of artificial intelligence, led the company to have its best daily performance of the year. In New York, Nvidia’s share is quoted at US$380.15. On B3, BDR NVDC34 is traded at BRL 40.37, after an increase of 29.43% today.
But, although the company has fallen into the ‘mouth of the people’, Enzo Pacheco, an analyst at Empiricus, recommends thinking twice before buying the company’s shares.
This is because, considering the revenue projections for 2023 and 2024, the company’s profit margins and a market value of more than US$ 900 billion, it arrives at a very high P/E (price-earnings) ratio for the years 2024 and 2025.
In this way, the Empiricus analyst attributes that the high valuation of the action closes space for the same magnitude of gains seen in these first five months of the year.
If Nvidia’s price seems too salty for the investor’s pocket, the visibility of the Santa Clara-based manufacturer may have opened up for other actions. Some of these, including had relevant highs in today’s trading session.
check out three winners and a loser of Nvidia’s ‘steamroller’ today.
Who won with Nvidia’s results?
Taiwan Semiconductor Manufacturing Company (TSM) | High of the day: +12%
The company that benefited the most from Nvidia’s takeoff is Taiwan’s state-owned chip maker. TSMC has an intense relationship with Nvidia, as it is in Taiwan that the high-tech processors designed by the company of the Silicon Valley.
In practice, it’s as if Nvidia ‘outsourced’ the production of items, focusing only on architecture; this strategy paid off for the US company, which saw its market value practically double that of its Chinese counterpart.
In any case, the increased demand for solutions offered by Nvidia is a good opportunity for the prospect of more sales from Nvidia. TMSC. And investors seem to be looking at it favorably.
Advanced Micro Devices Inc. (AMD) | High of the day: +11%
AMD was also another company with significant gains in the trading session. The perspective of greater demand for the company’s hardware, embedded in artificial intelligence applications, led to an increase of 11%, which led the company to have an accumulated valuation in 2023 of practically 100%. The stock is currently quoted at $120.35.
taking advantage of timing of its competitor, AMD announced a new line of processors that inspired a more optimistic look from market analysts. Bank of America (BofA).
Additionally, AMD has been recognized for advancing in the PC market, an area traditionally dominated by Intel. But then, going up against Nvidia feels like a completely different thing.
Micron Technology Inc (MU) | High of the day: +4.63%
Finally, and shyest, is Micron Technology. While the company has a product lineup capable of rivaling competitors, the manufacturer has been dragged into the economic war between the US and China.
The authority that regulates Chinese cyberspace claimed that Micron’s products pose risks to the national security of the country, vetoing the importation of chips. With that, the company loses a relevant market, which can impact on yours.
the big loser
Intel Corporation (INTC) | Low of the day: -5.65%
The celebrated PC chipmaker seems to have fallen behind in the race for new processors, even stuck in the age of CPUs.
Investors penalize the stock for Intel’s lack of initiatives in graphics processing units (GPUs) — the technology that will dictate the direction of the sector from now on.
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.