Nvidia Pre-Earnings Fundamental & Technical Analysis


After a phenomenal performance in 2023 so far, the company is setting itself to launch higher into 2024. AMD’s recent earnings foreshadowed what we can expect from leaders in the artificial intelligence space after the company reported a guidance of $2B in AI chip sales for next year. Nvidia is likely to follow the same route with even higher numbers. Last quarter’s revenue doubled, citing exponential demand in AI chips. The company’s revenue has grown their cash reserves to $10B and their asset to liability ratio to 2:1, with 41B in assets. Wall Street is bullish on Nvidia and will remain upbeat as long as AI demand continues to increase. The artificial intelligence market is currently worth around $150B, but that figure is expected to multiply tenfold to $1.3T by 2030. Nvidia and AMD (which we are already holding), are expected to be the leaders in the space. 

Nvidia is not only a leader in the artificial intelligence space, but their processors are largely used in crypto mining. The company’s recent rally can be attributed to both, demand for AI chips, and the push in crypto markets. If investors keep the optimism for Bitcoin and other notable cryptocurrencies, then Nvidia will also have a strong hold in the industry. 

🚨Take note🚨

Nvidia is currently at a price to earnings ratio of 112, about five times higher than the average price to earnings ratio. This is one of those one off stocks that could be worth taking while Wall Street is optimistic about AI. The move it has set is very similar to Tesla’s move in 2020 that led up to a split.