Nvidia shares climbed 8.74% on Aug. 27 after the company released its latest quarterly earnings, breaking a historical pattern in which the stock usually fell after earnings reports. Fundstrat analyst Tom Lee said the advance signals that the market remains healthy. The rally lasted just one day, however; on Aug. 28, Nvidia fell 4.57% to $217.55. The earnings report showed Nvidia generated $96.2 billion in revenue in the prior quarter, up 106% year over year — implying roughly $46.7 billion in the same quarter a year earlier — and the company guided to $108 billion in revenue for the current quarter. Lee noted that Nvidia's price-to-earnings ratio is still relatively low and that earnings expectations are rising faster than the share price. He also flagged a risk: opposition to new data-center construction in several parts of the U.S. is evolving into an election issue, and some Republican governors have expressed support for pausing construction. The commentary, originally from BeInCrypto, was carried by Techub News.
Nvidia shares jumped 8.74% on Aug. 27 after the company released its latest quarterly earnings, snapping a pattern in which the stock had tended to fall after previous earnings reports. Fundstrat analyst Tom Lee read the bounce as a sign that the market remains healthy. The gain did not last long: on Aug. 28, the stock slipped 4.57% to $217.55.
In the report, Nvidia said revenue reached $96.2 billion in the prior quarter, up 106% from a year earlier. For the current quarter, the company guided to $108 billion in revenue. Lee argued that Nvidia's price-to-earnings ratio is still low and that earnings expectations are growing faster than the share price.
Lee also pointed to a risk. Opposition to new data-center construction across several U.S. states is turning into an election issue, he said, and some Republican governors have backed a pause on building.
(BeInCrypto)
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