The technology companies have always had a big influence on the markets as they are the pioneers of the future life. Since the beginning of the 21st century, the industrial economy has been outpaced by the units of the information economy. As an inevitable consequence of that phenomenon, a little chip started to have more value than a whole factory.
In our recent history, the most devastating technological advancement is by far Artificial Intelligence and machine learning. Similar to the demand for fuel and electricity in the industrial economy, the new era has its own source to operate: Graphics Progressing Units (GPU).
As the sector itself requires a Know - how behind, there are certain companies that produce the vast majority of the GPUs around the world. Among these giants, you can find AMD, Intel, and Nvidia at the top of the lists.
NVIDIA, however, has attracted more attention than AMD and Intel last year due to the outstanding performance in the fiscal earnings in 2023.
Starting from $140 - $150 in January 2023, the shares of the company tripled its value to around $450 within 12 months. This is an unbelievably good performance of NVIDIA that made it the flagship of NASDAQ.
However, today the markets turned red again due to the expectations of poor performance by Nvidia. As its influence on both NASDAQ and crypto cannot be ignored, we are impatiently waiting for the earning reports to take position.
In the worst - case scenario, the markets might close the week in red due to the domination of bears. Contrarily, the investors still wish to test higher levels before a deep correction as we are marching toward interest rate cuts.
The dump on the price started before the market was open. Though many investors see that long red candle as a strategy to " manage the risk ", the reality might be an insider trade, too. Thus, lots of traders refrain from the high volatility and wait for the reports before jumping into it 😅
The survey results showed that the analysts expect $4+ to $5.5 earnings per share with more than $10B net revenue in the last quarter. When we consider the amount of net revenue in a quarter, there is nothing surprising to rely on the performance of a single company.
Until the number of GPU producers increases in the near future, we will feel the Nvidia impact heavily on almost all markets due to the domino effect on the stock markets.
Whatever data you are following, the day is not time for them as Nvidia decided to take over the ship. Everyone will be waiting for the signal coming from that giant. Crypto market cap already dropped around %3 and NASDAQ has lost %0.5 already.
What do you expect from the Q3 earnings reports by Nvidia?
Share your thoughts below 👇
Hive On ✌️