Market Musings 5/23/2024

Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!

Nvidia surges on another blowout earnings driven by #AI buildout demand, but all-time highs have markets cautious on the rest of the ecosystem.

Nvidia crushed its fiscal Q2 earnings yesterday on strong #AI demand.

FQ2 revenue topped $26B ($2B above its own guidance) and sees FQ3 topping $28B.

Data Centers, where #AI is reported, was up 5x from last year.

It’s no surprise that Nvidia popped +9% today.

However, outside of servers, the rest of the #AI ecosystem pulled back.

So why wasn’t the read thru more positive broadly? It’s likely for a number of reasons.

One, markets are at all-time highs giving investors pause on how much further the rally can go.

Two, summer is just around the corner when markets are slower.

And three, it’s likely a “sell the news” reaction.

There was a lot of anticipation for another Nvidia’s beat. We saw the market initially rise early before a steady stream of selling to close.

We wouldn’t be surprised with more near-term pullback with the #AI hype likely still a little ahead of itself right now. However, we’re still see #AI as a significant driver for the market longer-term.

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As of the publish date, Ursa portfolios may own NVDA. The stocks mentioned in this article may cease to be owned by Ursa portfolios at any point.

The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.

Original Photo by Tara Winstead.