Stock market today: S&P, Dow hit record highs as Nvidia ignites global rally | February 22, 2024

23 Feb 2024 (9 months ago)

NVIDIA and the AI Boom

NVIDIA's strong earnings report, beating expectations on both revenue and earnings per share, sparked a rally in the stock market.
The company's focus on generative AI and the increasing demand for countries to develop their own AI capabilities is seen as a key driver of growth.
Despite a slowdown in revenue from China, analysts remain bullish on NVIDIA, with 90% having a buy rating on the stock.
NVIDIA's performance is crucial for the broader market, as the tech sector, particularly info tech and communication services, has been leading the S&P 500's performance.
The demand for NVIDIA's hardware indicates a growing demand for AI among companies, which bodes well for software vendors in the AI space.
The momentum behind AI investment is expected to continue, benefiting not only NVIDIA but also its rivals in the tech industry.
Original equipment manufacturers (OEMs) are seen as potential beneficiaries of the growing demand for AI, as they play a crucial role in the AI ecosystem.
NVIDIA's dominance in AI and large language models is expected to continue for the next 12-18 months.
AMD is well-positioned to gain market share from NVIDIA in AI and inference.
Taiwan Semiconductor will continue to be a key enabler for AI and semiconductor companies.

Moderna beat market expectations despite a decline in COVID vaccine sales, and the company increased its market share for COVID vaccines in the last quarter.
Moderna is focusing on the launch of its RSV vaccine this year.
Moderna is working on a combo flu/COVID vaccine and has a partnership with Merck for a cancer vaccine.
Moderna is one of the first companies to use AWS to identify the current vaccine.

Etsy beat the street's expectations, but its guidance and warning for a slower fiscal year pressured shares.
Etsy is investing in large language models to improve user experience and drive up gross merchandise sales and volume on the platform.
The macro environment is the key driver for Etsy's growth in the next three to five years.
Temu and Shein's aggressive marketing strategies pose a near-term challenge for Etsy, but it is not seen as an existential threat.

NVIDIA's strong earnings report led to a 12.5% increase in its stock price, setting a new record at the open.
The broader market also experienced gains, with the S&P 500 up 1.3% and the Russell 2000 up 0.4%.
NVIDIA's performance in the first 30 minutes of trading will indicate if it can break out of its tight upper range.
Other chip stocks, such as Intel and AMD, also saw significant gains.
The Nikkei Index in Japan hit a 40-year high due to the rise of some of Intel's suppliers.
Financials have recently taken off, breaking out of a sideways pattern, with Goldman Sachs being a notable performer.
The Nasdaq 100, led by NVIDIA's 12% gain, is up 54% over the last three months.
NVIDIA's consistent quarterly performance aligns with its stock rally, making it a notable case study.
The question remains whether other companies will benefit from AI at the same scale as NVIDIA.
Chasing the rally in NVIDIA may carry risks, and investors should consider portfolio diversification to mitigate potential market risks.
The market's fundamental basis has become more challenging, but NVIDIA's numerous chip orders provide stability.

Moderna's surprising profit, despite a 40% decline in vaccine sales, highlights a shift in the narrative and growing excitement about cancer immunotherapy.
Oppenheimer's bio analyst emphasizes Moderna's transition from a COVID-19 vaccine-focused company to a five-product company in 2026, with a focus on pipeline development.
The company's mRNA platform enables shorter development times and increased probability of success, leading to faster product approvals and beating historical estimates.
Investors should focus on the pipeline discussion in the coming six to nine months, as Moderna's relentless pursuit of pipeline development drives the company's growth.

Rivian and Lucid's stocks decline due to lower-than-expected guidance and deliveries, reflecting diminishing demand for EVs and challenging market conditions.
The high price points of Rivian and Lucid vehicles further impact their margins, especially in the context of Tesla's price war.
Nikola Corporation, a manufacturer of hydrogen fuel cell electric trucks, delivered its first production vehicle in North America.
The company faced challenges and leadership changes, including an