(News Bulletin 247) – The graphics processor specialist closed Monday’s session at new all-time highs. Enthusiasm is intact before the publication of Nvidia’s quarterly accounts, this Tuesday evening after the close of the American markets.

Nvidia is undoubtedly the value for this year 2023. The title of the graphics processor specialist ended Monday’s session up 2.28% to $504.20, signing a historic closing high, after a peak at $505.47.

Nvidia is therefore at its zenith on the stock market as it approaches a quarterly publication closely watched by the markets. This is because expectations are high for Nvidia, which has accustomed investors to outperforming market consensus, the group being driven by the rise of generative artificial intelligence at the heart of conversational robots, such as ChatGPT.

An idea of ​​the excitement around AI

The group dominates the market for graphics chips essential for generating advanced tasks and applications in artificial intelligence.

And the surge in demand has propelled the company’s financial results. In the second quarter, Nvidia exploded analysts’ expectations by revealing revenues of $13.51 billion, a jump of more than 100% year-on-year. Its forecasts for the third quarter had also taken analysts by surprise, with the company anticipating a turnover of 16 billion dollars (against a consensus of 12.6 billion).

So much so that the graphics card giant has exceeded expectations for revenue in the last 8 consecutive quarters, and in 6 of the last 8 quarters for profits, recalls Investing.com.

In this context, Nvidia therefore has no room for error. The American giant “will try to exceed its own forecast of $16 billion in sales in the third quarter, compared to $13.5 billion a quarter earlier,” recalled Ipek Ozkardeskaya, analyst at Swissquote Bank cited by AFP. Which would represent growth of more than 18% compared to the previous quarter and above all almost 170% over one year!

On the earnings per share side, market expectations are also strong. This indicator is expected at $3.37 by consensus. Here too, this expected level of profit per share reflects an increase of 25% from one quarter to the next. And over a rolling year, it is therefore 6 times more than last year at the same time ($0.58).

A new high on the stock market?

Nvidia’s results will therefore have a test value “to get an idea of ​​the enthusiasm around artificial intelligence”, commented John Plassard quoted by AFP. For the moment, analysts are won over by the trajectory of the company’s accounts. According to the Investing.com consensus, 50 of the 53 research firms following the stock are Buy with an average price target of $641.88, or a little more than 27% potential.

“Better than expected results could allow Nvidia to reach a new peak,” said Ipek Ozkardeskaya, “but any less good result is likely to trigger significant profit-taking” and therefore a decline in a stock that has jumped by more than 200% since the start of the year.

Nvidia is worth more than $1,200 billion on the stock market. Which makes it the sixth largest capitalization in the world, according to the companiesmarketcap.com ranking, behind Amazon and its $1,510 billion capitalization. But it’s much more than Meta ($873.67 billion) or Tesla ($748.95). And Nvidia’s stock market weight is likely to strengthen, if the graphics card giant easily fulfills its contract this Tuesday evening at the close of the American markets…

“Nvidia’s results could also influence the trajectory of other Nasdaq megacaps (Microsoft, Alphabet, Apple and Meta) whose prices have also been driven this year by this theme of artificial intelligence, which mobilizes very significant investments” , explains Alexandre Baradez, head of market analysis at IG France.

“Tonight, it is not only the continued rebound of the SOX semiconductor index that will be tested, but probably also part of the rebound of the American indices. Nvidia is not only one stock among many “other, but it has become a symbol, the barometer of the dynamics of a sector which has created enormous stock market value in recent months”, he continues.