On November 24th, Cailian News Agency reported that NVIDIA released its strong third quarter financial report on Tuesday, amidst widespread expectations. Despite strong financial data, Nvidia's stock price failed to rise further.
In response, many Wall Street analysts have released reports stating that the market underestimates the future potential of Nvidia and even the AI market. They expect that as the changes brought about by artificial intelligence continue to sweep the world, Nvidia will continue to become the leader of the future US stock market.
Strong financial reports failed to boost stock prices?
From the data, Nvidia's financial report is quite strong: not only did its revenue and profits exceed market expectations in the third quarter, but it also has confidence in its outlook for the fourth quarter.
However, the market's attitude towards this financial report is relatively indifferent: the US stock market fell by over 4% in early trading on Wednesday, and although the decline later narrowed, it also closed down by 2.46% - although its stock price is still near a historical high, the cumulative increase in the company's stock price for the entire year is still over 233%.
On Thursday, the US stock market was closed for Thanksgiving and trading will end early on Friday.
Many analysts still insist that this is due to the market underestimating the potential of AI and NVIDIA. Analysts firmly believe that Nvidia will be a major growth target in the coming years. They expect that as global businesses and governments shift towards artificial intelligence in the future, artificial intelligence will continue to dominate the market - 'it's too early to get off the car now'.
Gene Munster, managing partner of Deepwater Asset Management, stated in a report after NVIDIA's financial statements, "NVIDIA's third and fourth quarter financial reports are impressive and have met high expectations. The company will continue to maintain impressive growth in the coming years as they are one of the key infrastructure builders of this paradigm shift
The explosion of artificial intelligence is far from over
Since the release of ChatGPT, a generative artificial intelligence chatbot, by OpenAI at the end of last year, the world has been shocked. Since then, generative artificial intelligence has become the hottest topic in the technology industry. As artificial intelligence continues to sweep across various industries around the world, Nvidia is expected to grow accordingly. Both NVIDIA itself and Wall Street believe that this upward trend is not yet over.
During the Q&A session of NVIDIA's financial report conference call, CEO Huang Renxun stated that he believes NVIDIA's data center business will continue to grow until 2025.
We are significantly expanding our supply. We already have the widest, largest, and most capable supply chain in the world, "said Huang Renxun. Therefore, I believe... we are at the beginning of a comprehensive industrial transformation, transitioning towards generating artificial intelligence and accelerating computing. This will affect every company, every industry, and every country.
Wall Street analysts generally agree with these statements.
After Nvidia released its report, Tristan Gerra, senior research analyst at Baird Equity Research, wrote in an investor report, "Nvidia is at the center of long-term demand for future artificial intelligence: countries, regions (cloud service providers), enterprises, and software companies are all part of the next wave of artificial intelligence, but overall, this wave is still in its early stages."
Meanwhile, Timothy Arcuri from UBS Global Research also stated that Huang Renxun seems to be fulfilling his promise.
"(NVIDIA) sounds confident in sustained growth - which makes sense for us as enterprise software companies are beginning to embed (NVIDIA) artificial intelligence into their platforms, go global, and expand NVIDIA's ecosystem."
Akuri predicted, "We believe it's too early to leave this train now, especially considering that artificial intelligence may be one of the most revolutionary technologies in our lives, and Nvidia will be the global platform for this technology