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The Zacks Analyst Blog Highlights NVIDIA, Super Micro Computer, Advanced Micro Devices, Rivian and Etsy
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For Immediate Release
Chicago, IL – February 22, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Super Micro Computer (SMCI - Free Report) , Advanced Micro Devices (AMD - Free Report) , Rivian (RIVN - Free Report) and Etsy (ETSY - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
NVIDIA Beats & Raises in Q4: Late Trading +8%
It’s tough to recall a more highly awaited single-quarter for a single company than NVIDIA’s fiscal Q4 results after today’s close. The leader of the A.I.-based tech stocks that became known as the Magnificent 7 roughly a year ago has only gotten stronger in 2024 than last year — at least until the last couple trading days. A slight level of trepidation began to creep in; would this great graphics chips company be able to continue to bring awe to Wall Street?
Keep in mind we happen to be at a time in the U.S. economy of continued uncertainty, as fleshed out in the Fed minutes from the latest FOMC meeting on January 30-31 (more on this later). NVIDIA shares had grown nearly +250% over the past year, and only started selling off somewhat as this earnings report grew nearer. To further complicate things, the “whisper number” on the Street was undoubtedly higher than consensus expectations — meaning even a solid beat may not be enough to quench stock buyers’ thirst upon the Q4 release.
Typically, NVIDIA beat estimates on both top and bottom lines, seemingly without breaking a sweat. Earnings of $5.16 per share — representing an eye-popping +769% year-over-year growth — on $22.1 billion in quarterly sales easily surpassed the $4.55 per share and $20.31 billion in the Zacks consensus, respectively. Its all-important Data Center segment grew +38% year over year to $18.4 billion, nearly a billion and a half dollars more than analysts were expecting. And this was without full participation of its China business, which continued to be hampered by U.S. licensing restrictions. Its Auto segment also beat estimates to $281 million in the quarter.
Fiscal Q1 revenue guidance was also impressive: $24 billion compared to the $21.5 billion analysts had been looking for. We don’t know exactly what the “whisper numbers” were for NVIDIA in the quarter, but apparently they had not been met: immediately upon the report’s release, shares fell another -3% on the news, after shedding nearly -8% from all-time highs registered a week ago. Yet in just the past few minutes, NVIDIA’s fortunes have changed — shares are now +8% in today’s after-market, and are up for related companies like Super Micro Computer and Advanced Micro Devices, as well.
Elsewhere, upstart EV maker Rivian posted slight beats on both top and bottom lines compared with Zacks consenses, but forecast a lower total number of vehicles expected to be made in 2024: 57K, roughly the same as the company produced in 2023, below the 66K analysts following the company were expecting. Shares are now down -13.7% in late trading, adding to the already precipitous -27% drop year to date.
Etsy shares are also down nearly -3%, as the specialty e-commerce platform posted a big miss on Q4 earnings — 62 cents per share versus 78 cents expected — while outperforming on the top line, with revenues of $842 million from $827.4 million in the Zacks consensus. Etsy also guided to a top-line next quarter anticipated to be the low point of 2024, with a pickup expected later in the year.
Finally, minutes from the Federal Open Market Committee (FOMC) were released at 2pm ET Wednesday, depicting a monetary body ahead of the market when it came to apprehension about the risks of a heating-up economy. The minutes showed the Fed already ruminating upside inflation possibilities at its two-day meeting at the end of last month, and as a group appeared in no hurry to begin cutting interest rates. Certainly not at its March 19-20 meeting; the next FOMC deliberation doesn’t happen until April 30-May 1st. By then we should have a clearer look at how the economy is clicking along, or whether it may then be in need of a rate cut.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights NVIDIA, Super Micro Computer, Advanced Micro Devices, Rivian and Etsy
For Immediate Release
Chicago, IL – February 22, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Super Micro Computer (SMCI - Free Report) , Advanced Micro Devices (AMD - Free Report) , Rivian (RIVN - Free Report) and Etsy (ETSY - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
NVIDIA Beats & Raises in Q4: Late Trading +8%
It’s tough to recall a more highly awaited single-quarter for a single company than NVIDIA’s fiscal Q4 results after today’s close. The leader of the A.I.-based tech stocks that became known as the Magnificent 7 roughly a year ago has only gotten stronger in 2024 than last year — at least until the last couple trading days. A slight level of trepidation began to creep in; would this great graphics chips company be able to continue to bring awe to Wall Street?
Keep in mind we happen to be at a time in the U.S. economy of continued uncertainty, as fleshed out in the Fed minutes from the latest FOMC meeting on January 30-31 (more on this later). NVIDIA shares had grown nearly +250% over the past year, and only started selling off somewhat as this earnings report grew nearer. To further complicate things, the “whisper number” on the Street was undoubtedly higher than consensus expectations — meaning even a solid beat may not be enough to quench stock buyers’ thirst upon the Q4 release.
Typically, NVIDIA beat estimates on both top and bottom lines, seemingly without breaking a sweat. Earnings of $5.16 per share — representing an eye-popping +769% year-over-year growth — on $22.1 billion in quarterly sales easily surpassed the $4.55 per share and $20.31 billion in the Zacks consensus, respectively. Its all-important Data Center segment grew +38% year over year to $18.4 billion, nearly a billion and a half dollars more than analysts were expecting. And this was without full participation of its China business, which continued to be hampered by U.S. licensing restrictions. Its Auto segment also beat estimates to $281 million in the quarter.
Fiscal Q1 revenue guidance was also impressive: $24 billion compared to the $21.5 billion analysts had been looking for. We don’t know exactly what the “whisper numbers” were for NVIDIA in the quarter, but apparently they had not been met: immediately upon the report’s release, shares fell another -3% on the news, after shedding nearly -8% from all-time highs registered a week ago. Yet in just the past few minutes, NVIDIA’s fortunes have changed — shares are now +8% in today’s after-market, and are up for related companies like Super Micro Computer and Advanced Micro Devices, as well.
Elsewhere, upstart EV maker Rivian posted slight beats on both top and bottom lines compared with Zacks consenses, but forecast a lower total number of vehicles expected to be made in 2024: 57K, roughly the same as the company produced in 2023, below the 66K analysts following the company were expecting. Shares are now down -13.7% in late trading, adding to the already precipitous -27% drop year to date.
Etsy shares are also down nearly -3%, as the specialty e-commerce platform posted a big miss on Q4 earnings — 62 cents per share versus 78 cents expected — while outperforming on the top line, with revenues of $842 million from $827.4 million in the Zacks consensus. Etsy also guided to a top-line next quarter anticipated to be the low point of 2024, with a pickup expected later in the year.
Finally, minutes from the Federal Open Market Committee (FOMC) were released at 2pm ET Wednesday, depicting a monetary body ahead of the market when it came to apprehension about the risks of a heating-up economy. The minutes showed the Fed already ruminating upside inflation possibilities at its two-day meeting at the end of last month, and as a group appeared in no hurry to begin cutting interest rates. Certainly not at its March 19-20 meeting; the next FOMC deliberation doesn’t happen until April 30-May 1st. By then we should have a clearer look at how the economy is clicking along, or whether it may then be in need of a rate cut.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.