![]() ![]() XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC. ![]() Tesla TSLA, Amazon AMZN, Nvidia (NVDA), Apple AAPL, Microsoft MSFT, Berkshire Hathaway (BRK/B),Block, Inc (SQ), Facebook FB, Meta Platforms, Alphabet GOOGL. The ongoing chip shortage threatens to cap Nvidia's supply of available chips.Elliott Wave Analysis 1 of (5) of C) of II. ![]() The use of Nvidia's gaming GPUs to mine cryptocurrencies could pin the company's growth on the volatile crypto market. Intel ( INTC -2.02%) is launching new discrete GPUs to compete against Nvidia and AMD, which is sure to bite into both companies' market share. Other unpredictable headwinds await on the horizon and could impact growth. Fb stock nvda upgrade#Looking ahead to fiscal year 2024, analysts expect Nvidia's revenue and earnings to decelerate further, growing just 17% and 20% respectively as the upgrade cycle continues to cool. Predictions have the company growing revenue by 29% and earnings by 26%. Those growth rates are surely solid, but analysts expect Nvidia's revenue and earnings to slow this year as the market's appetite for new gaming and data center GPUs wanes. ![]() Competitors could barely keep up: according to JPR, during the fourth quarter of 2021, Nvidia controlled 81% of the discrete GPU market, while its rival AMD ( AMD -1.08%) held a 19% share. Again, gaming and data center GPUs did most of the heavy lifting. What's more, adjusted gross margin rose to 66.8% and adjusted EPS grew by 78%. The following year, Nvidia's revenue continued to grow, hitting $24.91 billion by the end of January. Demand for cloud services increased as people worked from home, streamed media, and played video games, causing data centers to purchase more high-end GPUs to process AI and machine learning tasks. Sales of gaming GPUs jumped as people played more video games while stuck at home. Pandemic trends proved a boon for Nvidia: in fiscal year 2021, (ended January 2021), revenue surged 53% to $16.68 billion. The future, though, isn't all bleak: assuming Meta overcomes near-term challenges, analysts expect revenue and earnings alike to rise about 17% in 2023. Meta's sliding stock price reflects analyst expectations that company revenue will grow just 12% this year while earnings slide 10%. Investors are spooked by this combination of slow growth and high spending. This segment may prove promising in the future, but it's currently burning money: in 2021, Reality Labs racked up an operating loss of $10.1 billion while generating just $2.27 billion in revenue. Meta also plans to pour more cash into its unprofitable Reality Labs division, which focuses on virtual reality and the metaverse. That shift, though, will throttle near-term revenue and earnings growth as videos are difficult to monetize. To keep pace with TikTok, Meta plans to prioritize short video content on Facebook and Instagram Reels. The company also anticipates increased competition from short video apps like ByteDance's TikTok. Meta primarily blames this halt on Apple's ( AAPL 0.24%) iOS privacy update, which enables users to opt-out of data-tracking features. The company expects revenue in the first quarter of 2022 to represent 3% to 11% year-over-year growth. Those past numbers look fantastic, but Meta anticipates a slowdown in 2022. Should investors take the contrarian view and jump on opportunities to buy either tech stock at a steep discount? Let's take a fresh look at both companies to decide. Nvidia's plan to buy Arm Holdings and become a chip design powerhouse failed, disappointing investors. Nvidia stock has similarly stumbled, dipping to the mid $240s amid concerns about decelerating growth, peaking gross margins, and the ongoing chip shortage. After mixed fourth-quarter earnings and weak guidance in the year ahead due to its shifting business model, Meta stock now sits near $200. Nvidia stock peaked around the same time, reaching $333.76 in November 2021 as the chipmaker dazzled investors with robust sales of gaming and data center GPUs.įebruary brought that growth to a grinding halt for both companies, badly burning investors who had chased earlier rallies. After the initial COVID lockdowns, a surge in advertising growth drove Meta's stock to an all-time high of $382.18 last September. Meta Platforms ( META 0.26%) and Nvidia ( NVDA -3.36%) both seemed like unstoppable growth stocks in 2021. ![]()
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