Home Entrepreneur Why NVIDIA Shares Are Bought After Investment Date

Why NVIDIA Shares Are Bought After Investment Date


This could be a sign of good things to come, especially given some of the announcements that were made during the event. Let’s discuss some of the reasons why NVIDIA shares are strongly bought by investors after the trading date below.

April 14, 2021

4 minutes of reading

This story originally appeared on MarketBeat

It’s safe to say NVIDIA (NASDAQ: NVDA) just had a very successful investment day with the stock’s price action following the event. Investor dates can be impacted or missed for companies depending on what their respective management team has planned and the overall market’s adoption of the premium process. chant. Also known as analyst days, investor days are public meetings where a company’s CEO, along with other executives, present to a live audience. They offer publicly traded companies the opportunity to update investors on the company’s direction, provide good news, and provide insight into the company’s strategy and culture.

Sometimes, a company has an investor day that sends a rising stock like we are seeing here. This could be a sign of good things to come, especially given some of the announcements that were made during the event. Let’s discuss some of the reasons why NVIDIA shares are strongly bought by investors after the trading date below.

New Data Center CPU announced

NVIDIA is a leading semiconductor company that develops and markets graphics and mobile processors for PCs, workstations and wireless devices such as tablets and phones. One of the biggest headlines during the company’s investment day is the announcement of a new chip that could cause big trouble for competitors like Intel and AMD. NVIDIA’s Grace CPUs will target the data center market and can deliver up to 10X performance boost on servers handling high-performance compute workloads and complex AI. That means these chips could be very ubiquitous for research companies building supercomputers and could be one of the last keys to unlocking the full potential of nuclear intelligence. create.

Last year, NVIDIA made a record $ 6.7 billion in data center revenue and the move only helped solidify the company’s position in that market. Investors should also be delighted by the fact that NVIDIA’s data center business is growing at a rapid rate, as data center revenue in 2021 grew 124% year-on-year. . Some of the companies that could use NVIDIA’s latest chips include cloud giants like Amazon, Microsoft and Alphabet, which gives investors a good idea of ​​how big of the news is. this.

Track first quarter revenue for fiscal 2022 on prospects

We know that semiconductors are in high demand at the moment due to the huge globalization shortage among these essential chips. This is a big reason why investors should look at semiconductor stocks at this point, as demand is expected to exceed supply for the majority of this year. While NVIDIA had a very impressive Fiscal 2021 year and reported record revenues of $ 16.68 billion, up 53% from the same period last year, Fiscal Year 2022 could be even better. corporate force and chip shortage.

During the company’s Investor Day, NVIDIA reported that their Q1 2022 Financial revenue was tracking higher than previously announced. opinion. Essentially, this means the company predicts to beat the previous guide and deliver high earnings results, as the company’s overall Q1 revenue is tracking over $ 5.3 billion estimated from February. This is largely driven by strength across all of the company’s final markets, which is great reason to consider adding stocks at this point.

New all-time high

Another strong reason to consider adding NVIDIA stock at the moment is the fact that it hasn’t been doing much for the past year until now. From a technical standpoint, it has been trading sideways for months and only break off from a long period of consolidation thanks to recent investor dates. A classic saying for traders and investors to keep in mind is “the bigger the base, the bigger the breakout”, this most likely applies to this stock.

It seems that NVIDIA only needs a powerful catalyst to break out to new highs, which is why it might be a great time to add stock now when it is moving again. While buying a company’s stock at an all-time high may seem contradictory, it’s important to understand that there isn’t any cost drag in those types of situations. Stocks are in “price discovery” mode and can continue to rise in the next several sessions. The bottom line here is that NVIDIA’s current strength should not be ignored and the stock is doing well from a technical analysis standpoint, another great reason to consider more stocks.

NVIDIA is part of Entrepreneurship Index, tracks some of the largest publicly traded companies founded and run by entrepreneurs.

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