AI Surge: Nvidia Leads Thanksgiving Week Earnings
November 19, 2023
Earnings and Economic Data Take Center Stage Before Thanksgiving
As the Thanksgiving holiday approaches, a deluge of earnings reports looms on the horizon. All eyes are on Nvidia (NVDA), which has experienced a surge in its share price, driven by excitement over its artificial intelligence capabilities. It will be joined by other major players such as Lowe’s (LOW), Analog Devices (ADI), Autodesk (ADSK), Best Buy (BBY), Baidu (BIDU), Deere (DE), and DICK’S Sporting Goods (DKS), all set to reveal their latest financial results.
On the economic front, attention will turn to the November global flash PMIs and the U.S. durable goods orders report. Interest rate watchers will be eagerly awaiting the Federal Reserve’s FOMC meeting minutes and any takeaways from the recent European Central Bank meeting.
Q3 Earnings Spotlight: Nvidia
Nvidia (NVDA) is gearing up to release its third-quarter earnings on November 21, with the market brimming with anticipation. Analysts predict the company’s revenues will reach $15.99 billion, and earnings per share will stand at $3.37 for the quarter. The Santa Clara-based tech giant is expected to address various key issues during its earnings call, including the impact of export controls in China, updates on its product pipeline, data center supply chain insights, commentary on hyperscale operations, and revenue generated from AI services.
Morgan Stanley has already pointed out that the significant supply-demand imbalance has made a decline in peak demand seem trivial. Nvidia’s stock has soared by 240% since the beginning of the year, and the company is entering its earnings announcement on the back of a strong rally. The options market suggests an 8% move in the stock price is possible after the earnings are released.
Notable IPOs on the Horizon
The week also brings a wave of activity in the initial public offering (IPO) arena. Docola (DOCO), a company offering a unique platform for free patient care communication, is set to begin trading. The firm aims to price its 1.06 million units between $5.75 and $6.75. Additionally, the lockup period for certain shares of Foremost Lithium Resource & Technology (FMST) and Atmus Filtration Technologies (NYSE:ATMU) will expire. Mach Natural Resources (MNR) will also see the end of its quiet period, enabling analysts to commence with ratings.
Consumer Tech and Ecommerce Conference Highlights
Capping off the week is the Needham Consumer Tech/Ecommerce Virtual Conference on November 20. This conference promises to assemble an impressive lineup from the tech and ecommerce sectors, featuring names such as Genius Sports (NYSE:GENI), Sportradar (NASDAQ:SRAD), Etsy (ETSY), ACV Auctions (NASDAQ:ACVA), Beachbody (BODY), and Redfin (NASDAQ:RDFN). Participants will delve into the latest trends, strategic developments, and consumer insights in technology and e-commerce, capturing the interest of investors and industry experts.