Actions of Nvidia Corporation. NVDAthe perfect example of the artificial intelligence revolution, has experienced some volatility in recent sessions, along with the broader market.
What Happened: Steve Grassoa Wall Street trader and market analyst, said Tuesday that he no longer has a position in Nvidia. “I just sold my $NVDA balance which currently has 0. Judging by the price action, I will decide to get back in,” he said in a post on X, formerly Twitter.
One of his followers asked him when he would go public again and Grasso said: “It depends on the discount. I'm going to let it trade a little bit.”
On Monday, after Nvidia climbed back to $130 from the $103 level it fell to during the Aug. 5 market crash, Grasso revealed he had sold 50% of his Nvidia shares. The Grasso Global founder said he had bought the stock for $100 and would normally have sold 100% of it. “I feel like I might have some juice on the earnings,” he said.
See also: Best AI Stocks
Why it is important: TThe next big catalyst for Nvidia will be on Friday, when the chairman of the Federal Reserve Jerome Powell Powell is scheduled to speak at the Jackson Hole Symposium. Given that stocks have led the market both up and down, it is likely that Powell's speech could have ramifications for stocks.
An even bigger event to look forward to is Nvidia’s fiscal 2025 second-quarter results, which are set to be released after the market closes on Wednesday, August 28. The company is widely expected to report earnings of 64 cents per share and revenue of $28.46 billion, according to data from Benzinga Pro. This compares to 25 cents (split-adjusted) and $13.51 billion last year, respectively.
The company has consistently beaten lofty expectations for several quarters and it remains to be seen whether it can extend the streak. The stock was recently hit by negative headlines about a possible delay in the launch of the second generation of its B200 accelerator chips. In addition, China remains a concern amid the U.S. chip ban.
Commenting on his expectations, the Oppenheimer analyst Rick Schäfer The analyst said in a note Tuesday that he expects an upside to second-quarter results and third-quarter outlook, with the optimism based on sustained demand for cloud service providers and enterprise AI. The analyst expects a low-volume market introduction for Blackwell 100 accelerators in the fourth quarter, with significant ramp-up likely in the next quarter.
Nvidia is better positioned in AI, Schafer said, while reiterating an Outperform rating and a $150 price target.
Shares closed Tuesday's session down 2.12% at $127.25, according to Data from Benzinga Pro.
Nvidia is up 157% year-to-date compared to the SPDR S&P 500 ETF Trust SPY 18% advance and the iShares Semiconductor ETF's Socks Gain of 21%.
Image via Nvidia Blog
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