In the quarterly reporting schedule, the corresponding NVIDIA event is separated from other companies in the industry, so investors pay special attention to it. Given the sales dynamics of this company in the server segment, the stock market formed optimistic expectations on the eve of the publication of financial statistics, driving the NVIDIA share price to another historic high.
According to the results of yesterday’s trading, these securities exceeded $504 per share and continued their growth after the market closed. NVIDIA’s capitalization exceeds $ 1.22 trillion, and the further dynamics of its share price will depend on the information that the company’s management will receive at tomorrow’s reporting event. On average, based on last quarter’s results, analysts expect NVIDIA’s total revenue to grow 172% year-over-year to $16.2 billion. In the most recent quarter, it grew 171% to $10.32 billion. At the same time, the server segment accounted for three quarters of all revenue companies. Experts expect NVIDIA’s data center revenue to nearly quadruple to $13.02 billion in the third quarter. This means that its share of total sales will be over 80% if the forecast comes true.
The further dynamics of the NVIDIA share price will in many respects be determined by the forecast for the current quarter. Experts interviewed by LSEG, as explained CNBC, expect peak sales growth of 195% compared to last year. In 2024, in their opinion, the growth rate of the company’s sales will decrease. NVIDIA management is unlikely to provide numerical estimates of business development prospects in 2024 in its forecasts, but investors will pay careful attention to such signals.
NVIDIA’s revenue momentum next year could be influenced by the emergence of competitive offerings from AMD. Few people are satisfied with NVIDIA’s pricing policy in the server segment, but as the market for artificial intelligence systems grows rapidly, many participants are ready to accept this. The tightening of US anti-Chinese sanctions will also be an important issue for investors, as the company until recently generated up to a quarter of its total sales in this market. Finally, the recent events surrounding the OpenAI startup, whose developments largely determine the demand for NVIDIA accelerators, may also impact investor sentiment, so the corresponding assessments of company management will shape the further direction of price changes. Since the beginning of this year, the price of NVIDIA shares has risen by 245%, from this point of view, few securities on the US stock market can compare with them.