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| By Jim Nelson |
They’ve gone and done it … market traders have now created the first-ever $2 trillion publicly traded company.
If you took the week off from financial news, it’s possible you missed it. Nvidia (NVDA) remains the belle of the ball.
It’s also possible — though even more unlikely — that you’ve missed the likes of Gavin Magor, Sean Brodrick and, of course, Jon Markman pounding the table on this stock for months and even years.
In fact, all three have made — or currently are making — members of their various services money hand over fist with Nvidia shares.
Jon, our tech guru, has readers sitting on a potential 1,518% gain on NVDA as I write this!
So, why is this elite member of the “Magnificent Seven” surging of late … and winning the race to $2 trillion?
Wednesday, after the bell, the company announced its latest earnings. They were already expected to be giant. They ended up being even better than Wall Street fathomed.
Let me back up a moment. The company’s importance and stature come from its graphics processing units, or GPUs. While used in everything from gaming to crypto mining, GPUs are also essential to artificial intelligence and AI development.
These power the biggest tech trend since the dawn of the internet. And Nvidia’s are the best. In fact, the company has a market share north of 90% for AI-powered GPUs.
So, when the company reported earnings, investors were already expecting big things. After all, you couldn’t do anything over the last 12 or 18 months without hearing about AI.
Analysts expected $20 billion in Q4 revenue. Even that seemed wild, considering Nvidia only brought in $6.1 billion during Q4 2022. Still, this dynamo surpassed Wall Street’s mark, reporting $22.1 billion for the quarter.
The same story with earnings per share — Wall Street expected $4.20 … Nvidia delivered $4.93. Those numbers are compared to just 57 cents per share a year ago.
With that kind of performance, you can see why investors have been going wild for NVDA shares. But everything that goes up must come down … at least enough to take a breath.
Of course, you know your editors will keep the pulse of this all-important story. Let’s hear what they had to say this week …
Research Profits This President’s Day
While the market was closed on Monday for President’s Day, Gavin used the opportunity to dig into what makes the Weiss Ratings so great at finding winners AND some of the best ways to use it.
As noted above, AI is everywhere you look. But while all eyes are on the biggest players, like Nvidia, our startup specialist Chris Graebe says that not every AI story has been told yet. In fact, he has a tale about the important work one AI startup is doing for the cause.
How to Play This G.O.L.D. Opportunity
Gold has stayed above $2,000 per ounce for the better part of this year. Sean, our most insightful resource guru, believes it has further to go. He shares his favorite checklist of criteria when looking for what gold miners are likely to do well during a rally like this.
China’s economy has slipped. Its housing bubble is scaring off investors in droves. So, what happens to all the investment capital? Juan Villaverde explains what’s happening and where all that money is going now.
3 Red Flags to Avoid Losing Millions on Startups
Chris already shared one success story from his world of startups. He’s back with a much different tale … or tales. He identifies the three most important red flags you need to look out for when considering a startup investment.
That’s all for today. Enjoy the rest of your weekend!
Best,
Jim Nelson
Managing Editor, Weiss Ratings Daily
