Nvidia's Record-Breaking Earnings Boost SOX And NASDAQ Indexes: What Investors Need To Know

Zinger Key Points
  • Nvidia's earnings exceeded expectations by $1.5B in revenue, driving SOX up 5% and NASDAQ up 1% last week, Piper Sandler analyst notes.
  • Nvidia's Blackwell chip to ramp around October, with major customers like Amazon, Google, Meta, Microsoft, says Piper Sandler analyst.

Piper Sandler analyst Harsh V. Kumar noted that last week, the SOX was up 5%, the NASDAQ was up 1%, and the S&P was flat. 

The analyst said that Nvidia Corp’s NVDA earnings were the week’s highlight after much anticipation came into the print. 

Results from the company delivered and then some, even despite high investor expectations. Nvidia’s results and guidance both exceeded high expectations by ~$1.5 billion in revenues.

Revenues were well above street expectations for the quarter, and guidance from management provided further color around the ramp of the new Blackwell chip, which is set to ramp around the October quarter timeframe, Kumar said. He continued to see Nvidia as the premier accelerated compute & Gen AI supplier with Blackwell in full-scale production boasting of customers like Amazon.Com Inc AMZNAlphabet Inc GOOGL Google, Meta Platforms Inc METAMicrosoft Corp MSFT, and strong Hopper demand, exceeding Nvidia’s ability to supply in near-term to mid-term.

Kumar flagged that AI PCs were also in the news following the Microsoft Build. 

According to the analyst, Qualcomm Inc’s QCOM X Elite series will likely power the new PCs with Copilot+ and offer much improved battery life over x86 alternatives. 

Finally, Kumar added that Apple Inc AAPL is offering discounts in China for the iPhone as Huawei’s competition looks to continue eating into the company’s market share in the region.

Advanced Micro Devices, Inc AMD will power workloads for OpenAI as well as new Azure V5 VMs, Kumar flagged.

Photo via Shutterstock

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