Artificial intelligence (AI) has been a main topic in my Market 360 articles for the past few months. And for good reason.
AI has proven to be a great benefit to humanity and is quietly powering so much of our modern experience.
Businesses are harnessing this incredible power to do everything from processing financial transactions, analyzing marketing data, reviewing contracts, detecting tumors and more… faster and more accurately than human beings ever could.
Now, during this AI boom, there is one company in particular that is the clear leader: NVIDIA Corporation (NVDA).
And all eyes were on NVIDIA this week, as the company released its second-quarter earnings after the closing bell on Wednesday.
Now, in my 40 plus years of looking at earnings announcements, I have never ever seen anything like what NVIDIA did yesterday. So, in today’s Market 360, let’s get right into the company’s earnings results and their updates on AI. Then, I’ll share how to make sure how to make sure you’re not missing out on other top AI stocks.
The Numbers Are In…
Persistent demand for the NVIDIA’s AI chips added billions to its top line in its second quarter in fiscal year 2024. In fact, data center revenue soared to $10.3 billion, compared to $4.0 billion only six months ago. Total second-quarter revenue increased 101% year-over-year to $13.51 billion, a new record for the company. Analysts only expected revenue of $10.3 billion.
Second-quarter earnings surged 429% year-over-year to $2.70 per share, up from $0.51 per share in the second quarter of fiscal year 2023. The consensus estimate called for earnings of $2.09 per share, so NVIDIA beat estimates by 29.2%.
Company management commented, “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
As a result, NVIDIA anticipates that its business will continue to boom, especially as it boosts production of its AI chips in the upcoming quarters.
For the third quarter, NVIDIA now expects total revenue of about $16.0 billion, which is well above analysts’ current estimates for $12.61 billion. Analysts also anticipate third-quarter earnings will soar 312.1% year-over-year to $2.39 per share, but in light of NVIDIA’s second-quarter earnings beat and positive revenue outlook, I expect earnings estimates to continue to be revised higher in upcoming weeks and months.
NVIDIA shares rallied impressively in the wake of its quarterly earnings announcement, up more than 8% on Thursday morning. Given the strength of its business, I would not be surprised if the stock doubled in the next year, becoming a $1,000 stock in 2024!
How to Harness the Power of AI
With AI becoming an ever-more-powerful weapon in Wall Street’s arsenal, I think with stocks like NVIDIA, AI is going to be the single greatest opportunity to make incredible gains in the stock market.
So, to make sure that you have the opportunity to benefit from the breakthrough power of AI, I’m inviting you today to take advantage of something that will position you for the biggest potential gains to come, in the AI revolution and beyond.
It’s called the Platinum Growth Club.
This elite membership gives my readers VIP entry to everything I publish now and in the future – and the chance to potentially make huge gains, year after year. In fact, I added NVIDIA to my Platinum Growth Club Buy List back in June of 2020 – since then, the stock has risen a whopping 451 %!
A Platinum Growth Club membership could give you the chance to add more money to your nest egg than you imagined possible. That’s why I’ve decided to swing open the doors to my Platinum Growth Club today.
To learn more about Platinum Growth Club – and how to become a member – click here.
Sincerely,
Louis Navellier
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)
