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NVIDIA shares: market expectations exceeded – AI boom spurred on
Graphics card manufacturer NVIDIA Corp was able to exceed market expectations for the sixth time in a row given the ongoing boom in the artificial intelligence (AI) sector. However, the Chinese business is a downer.
Revenues can increase threefold – China business is a downer
At the end of 2023 and thus in the fourth quarter, revenues were $22.1 billion, three times as high as a year earlier. An average of $20.4 billion was previously expected.
The business with so-called processors for data centers increased fivefold. In the previous quarter, the sector had already quadrupled. For the current year, the company expects sales of $24 billion (+/- 2 percent).
In the Middle Kingdom, however, business within NVIDIA’s ranks was “only” able to grow by a mid-single-digit percentage range, it was said. Due to the enforcement of the rules, special AI processors, which are therefore not actually subject to US export restrictions, were also not allowed to be delivered.
50 percent increase since the beginning of the year – NVIDIA becomes the third most valuable company
Since the beginning of the year, NVIDIA shares have increased by around 50 percent. With a stock market valuation of $1.8 trillion, NVIDIA is considered the third most valuable company in the world.
Things should now also become interesting for investors from a chart technology perspective. Overall, investors could soon head for the $800 mark. However, given that the market situation is definitely overbought, market players should continue to prepare for the risk of significant price setbacks. In this case, the $600 mark would initially be targeted.
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