In the quarterly reporting schedule, the corresponding NVIDIA event is separated in time from other companies in the sector, so investors pay special attention to it. Considering the dynamics of this company’s revenue in the server segment, on the eve of the publication of financial statistics, the stock market formed optimistic expectations and pushed the NVIDIA stock price to another historical high.
Image Source: NVIDIA
According to the results of yesterday’s trading, these securities exceeded $504 per share and continued their growth after closing. NVIDIA’s capitalization exceeds $1.22 trillion, and further dynamics of the stock price will depend on the information that will be heard from the company’s management at tomorrow’s reporting event. On average, in relation to the results of the last quarter, analysts expect NVIDIA’s total revenue to grow by 172% year-on-year to $16.2 billion. Last quarter it grew by 171% to $10.32 billion. At the same time, the server segment formed three quarters of all revenue companies. Experts expect NVIDIA’s data center revenue to almost quadruple in the third quarter to $13.02 billion. Thus, its share of total revenue will exceed 80% if the forecast comes true.
In many ways, the further dynamics of NVIDIA’s stock price will be determined by the forecast for the current quarter. Experts surveyed by LSEG, as CNBC explains, expect peak revenue growth of 195% year-over-year. In 2024, in their opinion, the rate of expansion of the company’s revenue will decrease. NVIDIA management is unlikely to give numerical estimates of business development prospects in 2024 in its forecasts, but investors will carefully listen for such signals.
NVIDIA’s revenue dynamics next year may be affected by the emergence of competitive offerings from AMD. Few people are satisfied with NVIDIA’s pricing policy in the server segment, but while the market for artificial intelligence systems is rapidly growing, many participants are willing to put up with this. The worsening US anti-Chinese sanctions will also be an important topic for investors, since until recently the company received up to a quarter of its total revenue in this market. Finally, the latest events surrounding the OpenAI startup, whose developments largely dictate the demand for NVIDIA accelerators, can also have an impact on investor sentiment, so the corresponding assessments from the company’s management will shape the further direction of course changes. Since the beginning of this year, NVIDIA shares have risen in price by 245%, from this point of view, few securities on the US stock market can compare with them.
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