Nvidia Boosts Prices of U.S. Technology Stocks at the Close of Trading

Nvidia Boosts Prices of U.S. Technology Stocks at the Close of Trading

The stock prices of major technology companies witnessed a significant increase at the end of the trading session, thanks to Nvidia’s optimistic outlook as artificial intelligence reaches a “turning point.” With Nvidia’s strong earnings boosting confidence in artificial intelligence, this confidence translated into stock gains, with shares of the leading chipmaker rising by 6% after the closing, anticipating substantial sales gains for the current quarter.




Optimistic Outlook





On the stock market, the “QQQ” fund, tracking the Nasdaq 100 index, increased by $243 billion following Nvidia’s financial results. Analysts confirmed that the growing demand for artificial intelligence chips enhances confidence in this sector, reflecting positively on stocks and associated funds.


As these developments continue, the stock market remains under scrutiny, with investors closely monitoring the moves of the Federal Reserve, especially after officials stated that current economic conditions may not justify interest rate cuts. Despite the recent increases in consumer and producer prices, most analysts believe there is no economic bubble.


In this context, caution is growing regarding investments in Nvidia, with some experts expressing concerns about the sustainability of the company’s growth, especially amidst pricing pressures and fears of a potential economic bubble. However, others affirm that the increasing demand for artificial intelligence technology boosts confidence in the company’s and other related technology firms’ continued growth.





Optimistic Outlook:

Nvidia Presents Optimistic Sales Outlook as Artificial Intelligence Reaches Turning Point

Nvidia Corp announced promising sales forecasts for the current quarter, solidifying its position as one of the most valuable companies globally. In a statement released on Wednesday, the company anticipated achieving revenues of around $24 billion for the current quarter, compared to analysts’ average expectations of $21.9 billion.


The company’s shares jumped 6% in after-hours trading following the results announcement, with the stock price reaching $674.72 in New York, marking a 36% increase this year. These forecasts confirm Nvidia’s leading role as a major beneficiary of artificial intelligence computing developments.


In a sign of the importance of this transformation, Nvidia’s CEO, Jensen Huang, stated, “Accelerated computing and generative artificial intelligence have reached a turning point, with demand growing worldwide across industries and companies.”


Nvidia’s market value has increased by over $400 billion this year, reflecting investors’ optimism about its ability to continue dominating the artificial intelligence accelerator industry. Major companies like Amazon, Meta Platforms, Microsoft, and Google, which represent nearly 40% of Nvidia’s revenue, contribute to its success.


Despite these positives, Nvidia faces challenges such as increasing competition and pressure from some customers to develop their own artificial intelligence technologies. However, analysts expect the company to continue innovating and evolving to overcome these challenges and maintain its prominent position at the forefront of the artificial intelligence industry.




Nvidia Boosts Prices of U.S. Technology Stocks at the Close of Trading