⚡US100 gains 0,6% after strong Nvidia report

Nvidia's (NVDA.US) report, expected by all of Wall Street, beat analysts' forecasts; the company also gave a positive guidance for Q1 2024, potentially providing another dose of fuel for companies linked to the artificial intelligence trend. As a result, contracts on the Nasdaq 100 are already gaining nearly 0.6% in after-hours, on a strong trading volume, and Nvidia shares are trading more than 7% higher near $715 per share.

• Nvidia's revenue came in at more than $22 billion vs. $20 billion forecasts (265% YoY)
• Adjusted earnings per share: $5.16 vs. $4.63 exp.
• Q4 data center revenue (AI chips) surged more than 400% YoY
• 2023 full-year revenue came in $60.9 billion,126% YoY
• The company stressed that generative artificial intelligence is a disruptive technology, and sales to China dropped significantly

Investors' attention now shifts to the post-earnings conference, which is scheduled for 10 PM GMT. We can expect tomorrow to see a return of the bulls to the stocks of technology companies, which were heavily oversold ahead of Nvidia's quarterly report. We can already see a substitute for this in the shares of AMD (AMD.US) and SuperMicro Computers (SMCI.US), which are already gaining nearly 3% and 9% respectively, in US after-market.

Also, S&P rating agency commented today US macro data and Fed policy projections. Analysts told that beyond favorable year-end base effects, US economic expansion exceeded the agency's expectations, but S&P still believes that the Federal Reserve will cut its policy rate by 25 basis points at its June meeting. The agency expects Fed cuts totaling 75 basis points by year-end, and the previous 2024 outlook has not been changed.

US100 (D1 interaval)

Source: xStation5