Products in the showroom at Nvidia Corp offices in Taipei, Taiwan on June 2, 2023.
I-Hwa Cheng | Bloomberg | getty images
Tech investors are heading into Thanksgiving with plenty of holiday cheer.
The Nasdaq rose 2.4% this week, taking its three-week gain to 12%. It is the strongest rally since April 2020, when early Covid-induced stay-at-home requirements boosted e-commerce and cloud software stocks.
intel Large-cap tech was the biggest winner among stops this week, climbing 13%. The chip maker’s shares are now up 35% since Oct. 26, when the company reported better-than-expected profit and sales, driven by strong demand for PCs.
Analysts at Mizuho Securities raised their rating on Intel from neutral to buy this week, citing the company’s renewed emphasis on its data center business and an encouraging customer pipeline, which “could drive share gains and margin improvement.” It is possible.”
Semiconductors will be the primary area of focus next week for tech investors NVIDIA Results are scheduled to be reported on Tuesday. The stock has gained 22% over the past three weeks, bringing its gain for the year to 237%, surpassing all other members of the S&P 500.
Nvidia has been the biggest beneficiary of the boom in generative artificial intelligence, providing graphics processing units (GPUs) to handle powerful workload requirements. In its earnings report next week, the company is expected to show revenue growth of more than 170% for the third quarter, and for the fourth quarter analysts expect LSEG, formerly known as LSEG, according to Nvidia. Forecasts would suggest growth close to 200%. Refinitiv.
“Obviously all eyes will be on next week when they come out with earnings,” EMJ Capital founder Eric Jackson said in an interview on CNBC’s “Closing Bell” Thursday.
Jackson, who calls Nvidia his “top large-cap name,” thinks the market will see an early bounce tied to the end of the Federal Reserve’s rate hikes. According to CME Group, the central bank’s benchmark lending rate is targeted between 5.25%-5.5%, the highest in 22 years, and projections show the cut starting in May and falling by a full percentage point by the end of 2024. Fadewatch gauge.
The technology sector is one of the most sensitive sectors when it comes to interest rates, as low borrowing costs encourage risk, while higher rates push investors toward assets considered safer.
The broader market got a boost this week from restrained US inflation data. The consumer price index (CPI) was flat in October from a month earlier, while economists polled by Dow Jones had expected a gain of 0.1%. The numbers further fuel optimism that the Fed’s rate-hike campaign is over.
After Intel, Tesla It was the next biggest large-cap gainer this week, with shares of the electric vehicle company climbing 9.2%. Investors ignored comments from CEO Elon Musk, who said on his social media site X that he agreed with a post accusing “Jewish communities” of spreading “hate against white people.”
White House spokesman Andrew Bates said in a statement about Musk’s post, “We condemn in the strongest terms this despicable promotion of anti-Semitism and racist hatred, which runs counter to our core values as Americans. ”
Watch: EMJ’s Eric Jackson expects a good earnings report from Nvidia
