The Rundown - Nvidia Earnings Impress, Chip Stocks Rally

Starting point is 00:00:00 Welcome to the rundown, your daily market update in under five minutes. My name is Zadadmani, and today is Thursday, February 22nd. In today's episode, we talk all things Nvidia. Invidia's earnings came out last night, and they did not disappoint. There's a lot to discuss here, especially how Nvidia might have just saved the stock market. We also talk about EV companies. A couple EV companies reported earnings last night. Yeah, not doing so good right now.

Starting point is 00:00:25 Not even Nvidia could save them. And then we end the show with a fun fact about Japan. Something just happened to the Japanese stock market for the first time in 34 years. All right, enough of this intro. Let's get into it. Yesterday was a day full of nervous energy. You could just feel it. Investors were nervous all day in anticipation of Nvidia's earnings.

Starting point is 00:00:44 Despite that, the S&P and Dow were able to squeeze out a gain, but the NASDAG did finish slower for the third day in a row. And then it happened. At 4 p.m. Eastern Standard Time, Nvidia released their Q4 earnings, and it did not disappoint, everybody. Nvidia absolutely crushed it, and we're going to spend the rest of this episode talking about it. But before we do a quick check on the stock market today, because of Nvidia's blowout earnings, investors are doing their happy dance right now. Markets are ripping. All three major indices are in the green at the time of this recording, around 1230 Eastern,

Starting point is 00:01:14 and the S&P right now is hovering near all-time highs again. Absolutely wild stuff. Okay, so let's talk about Nvidia. Now, leading up to these earnings, the expectation for Nvidia was sky high. Go check out yesterday's episode if you want to learn more about that. Some investors were calling NVIDIA the most important stock in the stock market because if NVIDIA missed on their earnings, it could drag down the entire stock market with it. We don't have to worry about that because NVIDIA did not miss.

Starting point is 00:01:38 So let's talk about their numbers. NVIDIA's revenues came in at $22.1 billion. That's up 265% from a year ago. And it's also higher than what Wall Street was estimating. Wall Street estimates were around $20.6 billion. So they blew that out of the water. Invidia's data center revenues, that's the revenues from their AI chips, was 18, $129% from a year ago. I mean, I can't seem to contain my excitement here. And then on top of that,

Starting point is 00:02:05 Nvidia's profits came in at $12.3 billion. Higher than estimates, and that's up more than 769% from a year ago. This is just insane. I don't think I've ever seen a company grow their revenues like this. As a lot of people know, Nvidia's revenue growth is coming off the backs of the AI hype. Nvidia makes the best AI chips in the world, the H-100s, and every company's trying to get their hands on them to train their AI models. One thing seems to be clear from Nvidia's earnings, the AI hype is not slowing down. The CEO of Nvidia, Jensen Huang, who is an absolute boss, by the way, said in the earnings called that Nvidia can't seem to keep up with the demand for their AI chips.

Starting point is 00:02:42 Nvidia expects their Q1 revenues to come in around $24 billion, plus or minus 2%. That, again, was hired in the $22.17 billion that Wall Street analysts were expecting. And because of these blowout earnings, other AI companies are also benefiting today. AMD stock is up 11%. Arm stock is up 7%. SMCI stock is up 25%. This is around 12.30 p.m. Eastern Time. So yeah, just wild stuff.

Starting point is 00:03:07 And just another shout out to NVIDIA for saving all of our portfolios and pushing the stock market back to all-time highs. All right, let's shift gears a little bit because a couple other companies reported earnings yesterday that kind of went under their radar because of the hype around NVIDIA. EV companies Rivian and Lucid both reports. reported earnings yesterday, and they did the exact opposite of NVIDIA. They completely disappointed investors. Rivian's stock is down 25% at the time of this recording because of their disappointing earnings. Rivian's Q4 revenues came in at $1.3 billion. That actually met Wall Street

Starting point is 00:03:37 estimates. But Rivian reported a loss of $1.5 billion. That was more than what Wall Street was expecting. But to make matters worse, Rivian expects to deliver 57,000 vehicles this year. And Wall Street was hoping for at least 66,000. And I think that right there was enough for investors to freak out and the stock is now down more than 25% today at the time of this recording, around 1230 Eastern. Lucid, another EV company which reported earnings yesterday, also is down 15% after reporting worse than expected Q4 earnings. Lucid missed on revenues. Lucid's revenues came in at 157 million, and it's actually down from the $256 million from last year. So Lucid's revenues are dropping. Lucid also reported a loss of $653 million.

Starting point is 00:04:18 Lucid delivered 6,100 cars in 20203, and they expected to deliver 9,000 cars in 2024. That was a disappointment for Wall Street because they were expecting 12,000 deliveries for Lucid. So both these EV EV companies have a similar narrative. They're still operating at a loss, and they expect to deliver less vehicles this year than what Wall Street was estimating. So yeah, there you go. That's why the stock for these two EV companies are down big today. Maybe they should get into the AI business. I don't know.

Starting point is 00:04:42 That's what seems to be working these days. All right. wrap up the show with a fun fact. Today's fun fact is about Japan. Japan stock market hit all-time highs for the first time since December of 1989. It's been 34 years since Japan stock market was at this level. See, back in the late 80s, Japan's stock market went on a crazy rally. Most people recognize it as a bubble. Well, the bubble popped in the 90s, and Japan went through decades of deflation and low growth. People refer to that as Japan's lost decades. But it looks like things seem to be getting back on track in Japan now, and the markets are back at all-time highs, even though I did mention in an episode a few days ago that Japan's economy is technically in a recession, because their GDP shrank for two consecutive quarters. So stock market at all-time highs, economy in a recession. It just be like that sometimes, I guess. All right, guys, that's all I got for you guys today. Thank you guys so much for listening. What a crazy day. Hope you guys are enjoying the nice rally. And I'll be back here tomorrow to recap the markets once again. All right, see you guys back here tomorrow.

Starting point is 00:05:43 All views presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Public live hosts are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com slash disclosures. In paid partnership with Zaid Admani. Brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.

The Rundown - Nvidia Earnings Impress, Chip Stocks Rally

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