Nvidia Corporation (NASDAQ:NVDA) was one of the most fascinating companies to cover in 2023, as the microchip giant soared above a $1 trillion market capitalisation, posted record revenue beats, and did wonders for the leather jacket industry.
Here’s a recap of just some of our coverage from Nvidia’s annus mirabilis.
May 30: Nvidia joins the $1 trillion club
Nvidia became the latest tech company to join the $1 trillion club as a slate of positive recent news - including blockbuster first-quarter earnings - sent its shares soaring.
News that it is launching Israel-1, a supercomputer aimed at meeting soaring artificial intelligence (AI) demand, and a digital advertising deal with the world’s largest advertising company WPP PLC (LSE:WPP) to develop a platform that will create automated digital adverts using AI are just the latest announcements adding to the positive sentiment surrounding the firm.
“The momentum appears to be being generated by optimism over the chipmaker's position at the vanguard of AI chip development,” commented CMC Markets’ Michael Hewson.
June 28: Nvidia caught in the crossfires of US-China AI spat
Nvidia saw its share price take a 3% hit in US pre-market trades in response to the latest round of chest-thumping from the US administration.
According to a Wall Street Journal report, the US is contemplating additional limitations on the export of artificial intelligence (AI) chips to China, a large source of revenue for Nvidia.
The report says the Commerce Department plans to halt the shipment of chips produced by Nvidia and other chip manufacturers to Chinese customers, possibly commencing as early as July.
July 6: Jensen Huang’s Big Bet: Nvidia’s future on the line once again
Jensen Huang co-founded Nvidia Corporation (NASDAQ:NVDA) in 1993 with a focus: Create technology that will revolutionise the video games market.
Bear in mind that in 1993, the video games industry was essentially kids pumping coins into Street Fighter II at the local arcade, or even younger kids pushing 2D Mario sprites across a blocky TV screen.
Few predicted that gaming would become a US$200bn market a few decades later, eclipsing the music and film industries combined.
Huang must have had a hunch though, as the graphics processing unit (GPU) technology his company invented is today one of the fundamental underpinnings of gaming as we know it – and now the growth engine for artificial intelligence (AI).
August 24: Nvidia results prompt deluge of gushing market reactions
Deutsche Bank, UBS, Wedbush, and Morgan Stanley (NYSE:MS) were undeniably enchanted by Nvidia’s huge second-quarter beat on Wall Street expectations, with Morgan Stanley (NYSE:MS) noting that last quarter was the first in history that a semiconductor firm guided revenues $4 billion above consensus.
UBS emphasised Nvidia's pivotal role in AI, suggesting that the company could potentially see demand in the $30 billion per quarter range.
UBS analysts believe Nvidia's revenue next year could approach $100 billion, though they also anticipate a potential plateau as the market adjusts.
Ross Seymore at Deutsche Bank got creative with his praise, calling the results “another whopper from hopper”, referring to Nvidia’s H100 hopper GPU architecture that is designed to accelerate the training of AI models.
“Importantly, Nvidia somewhat dispelled investor concerns on supply bottlenecks, expecting supply to grow each quarter through next year. Overall, there is very little to pick at after such a strong report and guide, and our 2025 to 2026 earnings estimates rise around 60% as a result,” said Seymore.
Rounding out what feels like an inflection day for Nvidia, one of the few research firms with a sell rating on Nvidia stock has thrown in the towel and upgraded to 'hold'.
Morningstar analyst Brian Colello said the firm is “much more optimistic about the rise of AI workloads and how Nvidia’s wide moat should cement itself as an AI chip leader”.
November 21: Nvidia slots in another all-time high prior to third-quarter earnings
Nvidia soared to yet another all-time high in November in anticipation of its third-quarter earnings call scheduled for later today.
The fabless semiconductor giant grew 250% higher year to date in what was one of the best years in recent memory for any technology megacap.
November 22: Nvidia reactions from the Street
Nvidia Corporation (NASDAQ:NVDA) did it again with a walloping $2 billion revenue beat in the third quarter, in further proof that Wall Street simply cannot get a grip on the fabless semiconductor giant’s persistent growth.Third-quarter sales came to $18.12 billion, more than triple what it reported in the year-ago quarter and well above Street expectations of $16.18 billion.
December 8: With shares on a rip, is AMD eyeing up Nvidia’s lunch?
Advanced Micro Devices Inc’s unveiling of its new Nvidia-killing (hyperbolically speaking) MI300X artificial intelligence-focused chip has gone down a treat with investors.
Shares in the fabless chipmaker closed nearly 10% higher on Thursday and should add a few more points when US markets open on Friday, analysts predict.
The MI300X has been positioned as a potentially cheaper competitor to Nvidia’s leading-edge microchips, as the arms race for dominance of the rapidly expanding market for AI-focused hardware heats up.