Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 26, 2023

Article Excerpt

NVIDIA CORP., $389.46, Nasdaq symbol NVDA, remains a buy for aggressive investors. The company is a leading designer of 3D-capable video chips; they make video games run more smoothly and appear more lifelike. Nvidia has also adapted its chips for other applications, including artificial intelligence (AI), datacentres and self-driving cars. The stock jumped 26% this week after the company reported better-than-expected quarterly results but also increased its forecast revenue for the current quarter. That revision is largely due to strong demand for chips that power AI applications, such as the popular ChatGPT online chatbot/search engine. In its fiscal 2024 first quarter, ended April 30, 2023, revenue fell 13.2%, to $7.19 billion from $8.29 billion a year earlier. Even so, that beat the consensus forecast of $6.52 billion. Weaker sales of gaming-related chips offset better demand generally from datacentres (which use AI-related chips) and automakers. Earnings before unusual items dropped 21.2% in the quarter, to $2.71 billion from $3.44 billion. Due to fewer shares outstanding,…