S&P 500 nears historic 5,000 points, driven by robust gains in major tech stocks.
Nvidia, the world’s leading AI chipmaker, plays a pivotal role in this market surge.
Nvidia holds a dominant market share in the tech sector, a significant milestone since the internet’s inception.
Arm Holdings, owned by SoftBank, listed on Nasdaq in September.
Arm’s blowout performance in Q3, exceeding expectations, adds optimism for Nvidia’s upcoming update.
Arm anticipates 19% revenue growth to $3.1 billion and increased earnings to $1.22 per share.
Stock surges over 47%, adding nearly $50 billion to its market value.
Arm’s positive outlook tied to AI demand strengthens expectations for Nvidia’s performance.
Nvidia, one of Arm’s significant supporters, eyes potential gains after regulators thwarted its acquisition bid in 2022.
Analysts predict Q4 revenues of around $20.2 billion, a three-fold increase from the previous year.
Stock up 45.1% for the year, may need an outstanding performance to drive Nasdaq to a new record high.
Goldman Sachs analyst predicts a 3-5% beat on Q4 revenues and current-quarter outlook for Nvidia.
Nvidia’s B100 Blackwell, launching this year, contributes to revenue prospects and addresses supply chain issues.
Analysts believe Nvidia will remain the industry standard with robust hardware and software offerings.
Nvidia holds around 5% weight in the Nasdaq 100, making it a significant player in the index.
Analysts foresee the AI Revolution shaping the broader tech landscape, led by Microsoft and Nvidia.
Accelerated AI spending could propel Nvidia and Nasdaq to new heights amid chip shortages.
The S&P 500 is up over 21% since late October, signaling a strong bull market.
Factors include the end of the Federal Reserve’s rate-hiking cycle, strong Q4 earnings, and a resilient domestic economy.
Nasdaq, though impressive, lags 1.5% behind its November 2021 all-time high.
The “Magnificent 7” mega stocks, including Amazon, Meta Platforms, Microsoft, and Nvidia, play a crucial role in the market rally.
Tech-focused Nasdaq’s push for a new record high hinges on the final Magnificent 7 update of the season.
Nvidia’s role in the AI Revolution amplifies its influence on Nasdaq’s record surge.
As technology continues to drive market dynamics, Nvidia’s performance remains a key factor in shaping the financial landscape.