San Francisco, CA – Technology giants are seeing positive results in their recent earnings reports, except for Nvidia Corp, a major player in the AI computing market. Investors are eagerly awaiting Nvidia’s earnings report, which is scheduled for May 22, to see how the company is performing amid the current surge in demand for artificial intelligence tools.
Other tech companies like Meta Platforms Inc., Microsoft Corp., Amazon.com Inc., and Alphabet Inc. have all indicated that they will continue their capital expenditures at a steady or increased pace this year. This news has led to a boost in Nvidia’s shares, with the stock rising as much as 2.5% in early Monday trading.
Despite facing some challenges, Nvidia’s shares have rebounded since mid-April, following a market downturn for AI hardware makers. The company is still down about 5% from its peak in March. On the other hand, rival chipmaker Advanced Micro Devices Inc. saw a nearly 9% drop in its stock price despite forecasting increased sales for AI accelerators this year.
With most S&P 500 companies having already reported their earnings, technology and communication services firms are surpassing profit estimates at an impressive rate. Roughly 90% of tech and communication services companies have exceeded earnings estimates, indicating a strong performance in the sector.
Investors remain optimistic about the future of AI computing stocks, with combined capital expenditures from leading tech companies expected to exceed $200 billion this year. UBS Financial Services’ chief investment officer Americas, Solita Marcelli, sees great potential in generative artificial intelligence, citing positive tech fundamentals in the first-quarter reporting season.
In other tech news, Berkshire Hathaway Inc.’s Warren Buffett praised Apple Inc. at their annual meeting, Hon Hai Precision Industry Co. experienced a surge in its shares, and Chinese self-driving firm Beijing Momenta Technology Co. has reportedly filed for an IPO in the US.
As investors await Nvidia’s earnings report, the tech sector continues to be closely watched for any new developments that could impact stock prices and market trends. The upcoming weeks will provide more insights into the performance and prospects of leading tech companies in the AI computing industry.