Wall Street surges much higher after Nvidia’s results
Nvidia surges 15pc after recording impressive revenue
But is the stock just a flash in the pan?
The ASX is poised to open higher on Friday after a Nvidia-inspired rally on Wall Street. At 8am AEDT, the ASX 200 index futures contract was pointing up by +0.4%.
Overnight, the S&P 500 surged by +2.11%. The blue chips Dow Jones index was up by +1.18%, and the tech-heavy Nasdaq rocketed by +2.96%.
Nvidia’s earnings review
The session was all about Nvidia’s earnings, as the stock price jumped +16%.
In Q4, Nvidia reported impressive revenues totalling US$22.103 billion.
This result significantly exceeded analysts’ estimates, with projected revenues of around US$20.550 billion.
But that’s not all; earnings per share exceeded expectations, reaching US$5.16, compared to the expected US$4.61.
To illustrate the company’s growth and the benefits for its shareholders, for the same quarter in 2023, Nvidia reported earnings per share of just US$0.57.
“There’s no froth and bubble in this stock price, it’s that big and successful,” said Alex Pollack of Loftus Peak.
“Nvidia has solidified its position as the undisputed leader in artificial intelligence,” said Antonio Ernesto Di Giacomo at xs.com.
“For investors who don’t own the stock, we would be buying on any weakness,” said James Demmert at Main Street Research.
“The big question for investors is, can this continue? Put simply, yes. Nvidia continues to deliver in every way, and its results show there is still plenty of growth ahead,” said Josh Gilbert, a market analyst at eToro.
“This isn’t just a flash in the pan, nor a bubble, but a business that continues to make serious cash,” Gilbert added.
Other stock news
Intuitive Machines fell more than -11% despite telling investors that it will attempt to put the first US-made lander on the moon in more than 50 years.
Rivian Automotive plunged by -26% as the EV maker announced a disappointing production forecast, and another round of job cuts.
Moderna rallied by +13% after some surprising Q4 results that beat analysts’ estimates.
Other markets …
Gold price traded flat at US$2,024.96 an ounce.
Oil prices were up around +0.5%, with Brent now trading at US$83.45 a barrel.
The benchmark 10-year US Treasury yield traded flat at 4.32%.
Iron ore futures bounced back by around +0.8% to US$120.05 a tonne.
The Aussie dollar was up slightly by +0.1% to US65.57c.
Meanwhile, Bitcoin rose by +1% in the last 24 hours to US$51,648.
5 ASX small caps to watch today
29Metals (ASX:29M)
29M released its 31 December 2023 Mineral Resources and Ore Reserves estimates. Mineral Resource tonnes are maintained after depletion from production Mineral Resources tonnes totalling 128.3Mt (2022: 127.9Mt). Contained metal in Mineral Resources estimated at 2,260kt Cu, 2,309kt Zn, 1,292koz Au, 76,405koz Ag, 139kt Pb and 26kt Co.
Boom Logistics (ASX:BOL)
Revenue for the half was $129.7m, up 30% on the pcp. EBITDA was $24.3m, up $4.3m or 22% on pcp. The company has updated its FY24 guidance, with revenue over $235m (previously $225m to $235m), and NPAT over $5.5m (previously over $5.0m).
GenusPlus Group (ASX:GNP)
The communications infrastructure company’s revenue for the half was $250 million, up 11.3% on the pcp. Normalised EBITDA was $21.9 million, up 27.2% on the pcp. The company has upgraded its EBITDA guidance, with expectations now to deliver 10-15% growth in EBITDA in FY24. GNP also said strong growth is expected to continue in FY25 and beyond.
CleanSpace Holdings (ASX:CSX)
H1 revenue was $7.3m, a growth of 27% v pcp. H1 Operating EBITDA loss was -$2.5m, which was better $3.8m better than the pcp. CSX says it sees continued strong revenue momentum, and expects cash break even later in 2024 calendar year.
Sierra Nevada Gold (ASX:SNX)
SNX has received strong assays from a reverse circulation (RC) drilling program (12 holes for 913m) testing near-surface mineralisation at the Gold Coin and Discovery Shaft areas within the historic Warrior mining centre. Better results include: 20.73m at 2.13g/t Au from 62.2m inc.10.97m at 3.76g/t Au from 63.4m.
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