Market Musings 11/18/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Nvidia is reporting Wednesday and that means－it’s an #AI week.
So, the week kicked off with reports Nvidia’s next gen #AI chip Blackwell is overheating servers, but may just be a rack configuration issue.
All may be forgiven though depending on the report.
Per estimates, Nvidia is expected to post $33B in revenue this quarter and guide to $37B for the next.
However, whisper numbers are likely a lot higher as Nvidia has been blowing out estimates each quarter.
So why does this matter for the rest of #AI?
Well, for #BigTech cloud providers, investors have been skeptical of their #AI spend which drives a large portion of Nvidia’s sales. Another blowout might mute enthusiasm for the the ones spending the money.
On the flip side, server and component makers like memory chips would benefit if demand continues to grow.
Meanwhile, Nvidia’s competitors are behind and largely betting grabbing future slices of the expanding market share pie. Their prospects would shrink if demand starts falling off.
So, a lot likely to be gleaned from this report. We’ll see what comes and provide an update later in the week!
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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.
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Original Photo by Pixabay.