CNBC | Stocks rally back as rate and oil fears ease. Dow jumps more than 600 points
“Nvidia is the most important AI stock, and since so much of the stock market’s gains over the past few years have been driven by the incredible capabilities of AI, the outcome of Wednesday’s earnings report means everything for this market,” said James Demmert, chief investment officer at Main Street Research.
The stock has risen almost 21% this year, and Demmert noted that while there is skepticism build into the chipmaker and AI darling, especially given its massive run of more than 1,400% in the last five years, expectations are “somewhat muted” going into the report.
“The sticking points in Nvidia’s earnings report are any signs of margin compression due to rising memory prices, along with how the company is navigating sales in China,” he added.
Disclosures: Main Street Research LLC (“MSR”) is an SEC registered investment adviser; however, this does not imply any level of skill or training, and no inference of such should be made. The opinions expressed herein are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. We provide historical content for transparency purposes only. All opinions are subject to change without notice and, due to changes in the market or economic conditions, may not necessarily come to pass. Mention of a security should not be considered a recommendation or solicitation to purchase or sell the security, and any securities mentioned may be held by MSR for client portfolios. The information posted represents an opinion as of the date published and should not be considered an investment recommendation. MSR does not become a fiduciary to any reader or other person or entity by the person’s use of or access to the material. The reader assumes the responsibility of evaluating the merits and risks associated with the use of any information or other content and for any decisions based on such content. Investment disclosure —neither the information nor any opinion expressed herein constitutes a solicitation by main street of the purchase or sale of any securities or other financial instruments nor a recommendation to hold, sell, buy, or own a particular security or sector in your portfolio and do not represent all securities purchased, sold or recommended for client accounts. The listener should not assume that an investment in these securities has been or will be profitable. Individual recommendations are tailored to individual portfolios. Main street client portfolios are managed separately and vary in regard to risk and return dependent upon individual client circumstances. A full list of all securities in the MSR client portfolio is available upon request.
