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Nvidia + Governments: Billion-Dollar Success
Rafael Balbi
January 16, 2024
Featured Stock of the Week
A note that Underwriter and this newsletter is not investing advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice.
NVDA - Nvidia
Our featured stock of this week is Nvidia. The hottest stock of 2023 continues to be a very hot stock in 2024. Nvidia closed out the year with sources noting a China focused AI chip launching in Q2 to avoid a US ban.
High Price Targets
Based off price targets and analyst ratings, analysts still think Nvidia has a lot of good potential heading into 2024. Additional Reading |   |
Global Expansion & Powering Governments
India data center firm -Yotta, has placed another $500M order with Nvidia bringing its order total to $1B. The UK plans to spend >$100M on AI chips with Nvidia making up a large portion of that spending. Singapore only trailed behind the U.S. (34.77%,) Taiwan (23.91%) and China including Hong Kong (22.24%) in Nvidia’s third-quarter sales rankings. Additional Reading |  |
Expected Growth of Data Center Business
Nvidia’s data center revenue for Q3 of $14.5 B was up 41% from Q2. Nvidia expects its data center business to continue to grow through 2025. It also announced a string of new partnerships to accelerate AI adoption: Additional Reading |  |
Major Market News
Tuesday, Jan 16th - Christopher Waller, Board Member of The Fed will speak
What is The Fed: The Fed (The Federal Reserve) is the central bank of the US. It sets and helps to decide on things like monetary policy, bank regulations and consumer protection laws.
Why this matters: Inflation has been the economic topic of the last year. The Federal Reserve increased rates (the federal funds rate) to slow inflation. The federal fund rate is the interest rate that banks charge one another to borrow money. Higher rates make it more expensive to borrow money which slows economic activity and therefor can cool off inflation. The Fed has kept rates high to help inflation cool off.
Christopher Waller’s coming speech may hint at when The Fed may cut rates.
Impact: The stock market is closely watching when The Fed will start cutting rates. If and when rates do drop, analyst anticipate a healthy stock market run.
source: Fed Reserve report, Investopedia
Wednesday, Jan 17th - US Retail Sales Report
What: Analyzes how much everyday consumer have spent
Impact: A steady or uptick in retail sales may be a healthy sign that consumers are spending and therefor generating economic activity. This would positively impact stocks. A drop in consumer spending may be a negative sign that consumers are spending less and therefor economic activity is slowing.
