NVDA after hours reported better than expected numbers on lowered expectations (earnings and revenues for the quarter), but missed last years numbers by a landslide. Year over year earnings were down 46%. This warranted a $45 Billion dollar market cap increase in the pop you see to the underside of the well defined uptrend line thats been in place since January 6th. NVDA is essentially the last man standing. Management is excellent on conference calls and does their best to meet Wall Street expectations. With this nearly 9% pop, NVDA is up over 100% since Jan 6. Compare that with any of the over $500B club and there is no comparison. The market has some important levels to test below. NVDA will be distributed at higher prices over the next few days and maybe even shorter with jobless claims and PCE Thurs and Fri respectively. The low volume after hours push and tomorrow's upgrades will give way to the reality that the Fed is raising rates and the cost of producing chips will be even higher as demand starts to finally wain. Could it push above its highs over the last two weeks, maybe. But the precision of the uptrend line and the authority it represents would call for a super heavy volume thrust and repricing of the stock that makes no sense in this environment. At 60 times earnings and 18 times next years sales, this is the richest in the club. The two big kids on the block AAPL and MSFT don't trade anywhere near these levels and the growth at NVDA doesn't warrant these multiples. I think we have some tough times ahed and this stock is the first of the $500B club to break next. Not trading advice.
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CORRECTION: NVDA is up over 100% since the October bottom and 62% since January 6th.
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NVDA added $73 billion in market cap today. Think about that for just one second. The craziness related to AI caused most of this move and slightly better guidance. How they have visibility and nobody else does is interesting in and of itself. The sugar high will end soon enough.