Nvidia Dominates Earnings

NVIDIA: Dominates Earnings

Nvidia is gearing up for its largest stock jump in nine months thanks to a stellar sales forecast, solidifying its position as the leading chipmaker worldwide. This comes after a quarter where Nvidia's revenue soared to $22.1 billion, with earnings surpassing forecasts, demonstrating significant growth from its total annual revenue in 2021. The company projects $24 billion in revenue for the current quarter, outdoing analysts' expectations of $21.9 billion.

The data center business, Nvidia's primary revenue driver, grew by 409% year-over-year to $18.4 billion. Meanwhile, gaming chips added $2.87 billion. Nvidia, which started in 1993 focusing on gaming graphics, has evolved into an AI powerhouse. Its H100 accelerators are sought after in the tech world, with major firms like Amazon, Meta, Microsoft, and Google—accounting for nearly 40% of its revenue—ramping up their AI hardware investments.

🎯 GRIT TAKE: What an absolute blowout earnings… Upgrade to GRIT VIP to read the full GRIT Take!

Genevieve is on the CFA Society Podcast! 🎙

This episode features a special face-to-face conversation between Matthew Andrade, CFA, and Genevieve Roch-Decter, CFA. Genevieve is the CEO of GRIT, a financial media company that democratizes access to institutional insights for the masses. She founded GRIT after realizing that only the top 1% received the best insights. 

Genevieve joined the panel in Calgary at the 47th Annual CFA Forecast Dinner. While in Calgary, she and Matthew sat down to discuss the inception of GRIT, why democratizing access to financial insights has become such a passion for her, and more. Listen to learn about Genevieve's career journey! 👇

RIVIAN: More Bad News

Rivian Automotive stock declined after announcing a lower-than-expected vehicle production forecast of 57,000 units for the year. This falls far below expectations and is similar to last year's output. On top of this, they announced another round of job cuts affecting 10% of its salaried staff.

Rivian faces challenges in increasing production and minimizing losses in a slowing electric vehicle market. This has led them to focus on cost-cutting despite a projected $2.7 billion adjusted loss. The company is also increasing its capital expenditures to $1.75 billion. Rivian continues to expand, with plans for a new factory in Georgia. Meanwhile, Lucid Group also underwhelmed with its production forecast, aiming to produce 9,000 vehicles which was below analyst expectations.

FED: Cautious Approach

Federal Reserve officials have signaled a cautious approach, indicating no quick moves to cut interest rates amid mixed feelings about inflation trends. According to the latest meeting minutes, they emphasized the need for more concrete evidence that inflation is consistently heading towards their 2% target before considering any policy relaxation.

This cautious stance is maintained even as the economy shows stability, reflecting a deliberate approach to ensure that inflation pressures are genuinely easing without prematurely altering monetary policy. The emphasis is on a data-driven decision-making process, with officials keen on avoiding hasty rate reductions that could undermine their inflation goals.

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Mr. Wonderful

Kevin O'Leary, also known as "Mr. Wonderful," is a Canadian businessman, author, and television personality who made the bulk of his fortune through a software company he co-founded, SoftKey Software Products, later known as The Learning Company. Starting in the late 1980s, O'Leary's venture capitalized on the demand for family and educational software during the rise of personal computing. The Learning Company grew aggressively through acquisitions, absorbing competitors, and expanding its software library.

In 1999, Mattel acquired The Learning Company for about $4.2 billion, marking a significant peak in O'Leary's entrepreneurial career. Following the sale, O'Leary diversified his investments, including ventures in storage solutions, entertainment, and a range of other industries, further solidifying his status as a successful investor and media personality.

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The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.