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Way back in the tall weeds of financial reporting, but some people think $NVDA is cooking the books.
Nvidia's forward PE ratio tumbles to lowest in eight months
https://www.msn.com/en-gb/money/othe...hs/ar-AA1fWgZ1At that price, Nvidia shares are trading at the equivalent of around 33 times expected earnings over the next 12 months, according to Refinitiv data. That forward PE compares to over 46 a week ago, and it is now at its lowest since December 2022.
In its report last week, Nvidia, with a stock market value of $1.14 trillion, also said it would buy back $25 billion of its shares, suggesting chief executive Jensen Huang views them as undervalued, even after gaining 220% year to date.
Following its report, analysts on average expect Nvidia's revenue for the fiscal year ending in January 2024 to reach $53 billion, nearly double the previous year, according to Refinitiv data. The company's net income is seen quintupling to over $22 billion in the same fiscal year before reaching $35 billion the following year.
Way back in the tall weeds of financial reporting, but some people think $NVDA is cooking the books.
I've heard these accusations and so far the only real thing I can find is an accounting trick some companies use to record sales before they have actually happened, but there is no way to tell until the next quarter... i do know that hedge funds are head deep into technology stocks right now, overbought according to some sources I have spoken to. If you look at the price action of some of the big 8 last week, both Tesla and Apple seen over bought at current price and could be headed for a pullback.
That said, I sure would not be shorting NVDIA.....Tom Lee says September could be a big month
In fact, the whole market seems to be primed for a 10% pullback and as investors know, September is the worst month of the market traditionally. We could see more consolidation and even stock the like SP500 move higher, but the dip is coming eventually without fresh liquidity.
JPMorgan analyst Harlan Sur noted that expectations were high, heading into the fiscal second-quarter print. Still, Nvidia delivered results and guidance that were way above estimates, thanks to the significant demand pull for the company's data center products.
The analyst expects the company's earnings power to grow by over 30% annually over the next few years, driven by continued strength in the data center segment, an incremental auto revenue pipeline of nearly $14 billion, and an incremental $1 billion to $2 billion from software, licensing and subscription revenues over the next 3 to 4 years.
Sur raised his price target to $600 from $500 and reaffirmed a buy rating on NVDA stock, saying, "The build out of generative AI and large language/transformer models are continuing to drive expanding demand for NVIDIA's accelerated compute/networking platforms and software solutions."
Where is NVDIA going and why is it dropping......NvDIA has a lot of shorts right now who think that the company is cooking the books...there is no proof that i have seen of NvDIA wrongdoing but sometimes the market moves on rumor and not on fact. That seems to be the case here.
There are bulls keeping NVidia propped up between 465 and 460, if these bulls lose the battle, which I think they will.....NVDIa could head to between 400 and 420....
There isn't any consensus among the analyst I have seen as far as how low Nvdia could go...some say 430, some 420 some 400....I think we will have a better idea next week as far as inflation in the economy....
....but sometime next week, or the week after, we are going to be presented with an excellent buy the dip opportunity and a chance to swing some call spreads if you like options
Hope everyone has made some money shorting NVDIA....we hit the first price prediction on 430 yesterday, but i don't think NVIDIA is done dropping. The price action showed support at midday so we could see another dead cat bounce in the next 2 days. Does not matter, the overall trend now is bearish in the markets and NVDIA could easily go to 400 or lower before any type of real swing.
The overall market is weak and even though its still moving along market fundamentals...just no buyers
To forecast Nvidia’s success, it’s therefore helpful to think about companies like Microsoft Corp. and Alphabet Inc.’s Google that are buying up Nvidia’s AI gear and paying to access it through cloud services. Will these companies successfully develop next-generation software and services that will generate revenue gains for themselves, and more importantly, when will that happen?
For Nvidia to follow Apple’s example, those customers will need to succeed with their new offerings no more than a couple of years down the road. Nvidia executives have not provided financial guidance more than a quarter ahead, but analysts have suggested this wave of investment is unlikely to continue beyond that without such a surge from other tech companies.
“While gauging the magnitude and trajectory of capacity additions and AI demand may be foolish to predict, we suspect that we likely have another 12 – 18 months+ of unbridled AI infrastructure build-out, but things look murkier beyond that,” Bernstein analysts wrote in late July, while looking at other historical comparisons for Nvidia’s success.
VIDIA and SoftBank Group Corp. (SBG) today announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund (together, “SoftBank”) in a transaction valued at $40 billion. The transaction is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin and non-GAAP earnings per share.
The combination brings together NVIDIA’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets. SoftBank will remain committed to Arm’s long-term success through its ownership stake in NVIDIA, expected to be under 10 percent.
“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA. “In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI.
“Simon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world. Uniting NVIDIA’s AI computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.
“This combination has tremendous benefits for both companies, our customers, and the industry. For Arm’s ecosystem, the combination will turbocharge Arm’s R&D capacity and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technology.
“Arm will remain headquartered in Cambridge. We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields. And, to attract researchers and scientists from the U.K. and around the world to conduct groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.”
The key question is the longevity of AI-driven demand. Nvidia experienced demand and subsequent decline in GPU mining for cryptocurrencies.
AI appears more enduring, but it’s uncertain how many data centers are needed. Once a company builds an AI-powered data center, will it build more?
The answers are elusive because the full impact of AI on businesses remains uncertain. While it could be transformative, some customers may be content with their existing supercomputing infrastructure.
The timeline for AI demand’s sustainability remains uncertain. While caution is warranted, don’t underestimate the potential for a paradigm shift.
For investors, prudence is key. Nvidia’s future revenue trajectory post-initial AI demand is uncertain. Diversify your portfolio to manage risk and capture potential gains. It’s wise to secure profits while preserving the upside.
Nvidia’s market role is intriguing, but requires vigilant monitoring because of its unpredictability.
LOL Looks like a bouts thread(s).
Every single person who's in the industry saw this coming when Nvidia priced their entry level GPU at $500.
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