Nvidia Hits a New All-Time High
This week, Nvidia reached a new all-time high, with its share price surpassing $217.
The stock had been moving sideways for around seven months, but suddenly the market seems to have realized that we are going to need much more computing power.
In other words, Nvidia remains the most valuable company in the world, and that is now being reflected in its stock price as well.
The company’s market capitalization has now surpassed $5.2 trillion, which is around $1 trillion more than the second-largest company, Google. Google also moved higher yesterday, with its stock surpassing $350.
It will be interesting to see whether Big Tech companies announce higher capital expenditure tomorrow, as that could mean even more demand for Nvidia chips.
Visa Reports an Excellent Quarter
Yesterday, Visa announced its quarterly results, and in my opinion, they were excellent.
The company beat analysts’ expectations both on revenue and earnings per share, delivering a clear double beat.
The growth Visa is still producing on a yearly basis is impressive.
Revenue increased by 17% year over year, while earnings per share rose by 20%.
On top of that, the board authorized a $20 billion share buyback program for the coming years.
Following these results, the stock jumped 5% in after-hours trading.
In my opinion, Visa continues to look very undervalued.
Three SaaS Stocks: Opportunity or Value Trap?
Today, we are looking at three companies that continue to deliver steady revenue growth, but whose stock prices have been under pressure.
First, Salesforce.
Its last twelve months revenue is up 37%, while the stock is up only 9.6%.
Second, Fair Isaac.
Its last twelve months revenue is up 50%, while the stock is up 144%, although it has recently suffered a sharp decline.
Third, CoStar.
Its last twelve months revenue is up 53%, but the stock is down 48%.
The sell-off in SaaS companies continues.
The next earnings reports will be crucial for the future direction of these stocks.
The Incredible Semiconductor Rally
Over the past month, the semiconductor sector has absolutely exploded higher.
We are talking about huge returns.
Intel is up 75%.
AMD is up 58%.
Texas Instruments is up 41%.
Broadcom is up 32%.
Micron is up 30%.
Nvidia is up 16.5%.
The semiconductor ETF chart clearly shows the explosive upward move in the sector.
Over the last month, it is up 29%.
Year to date, it is up 51%.
It looks like the narrative that “we will need massive computing power in the coming years” has fully returned to Wall Street.