When Nvidia sneezes, the stock market catches a cold
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 21 November 2024
⏱️ 7 minutes
🧾️ Download transcript
Summary
Nvidia is the most valuable company on the S&P 500 index, and Wednesday’s earnings report would be the envy of most companies. The chipmaker saw its sales double compared to a year ago, reporting $19 billion in profit. But its stock price dipped after the earnings report came out. Also on today’s show, U.S. federal prosecutors charge one of the world’s richest men with fraud, and Spirit Airlines joins a long list of carriers that have filed for bankruptcy over the years.
Transcript
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| 0:00.0 | When NVIDIA sneezes, and sometimes when it doesn't, the stock market catches a cold. |
| 0:07.0 | For a marketplace, I'm Sabree Beneshire in for David Brancaccio. |
| 0:10.2 | Invidia is the most valuable company on the S&P 500 index, and yesterday's earnings report would be the envy of most companies. |
| 0:18.6 | NVIDIA doubled sales compared to a year ago. Profit came in at about |
| 0:22.1 | $19 billion, but its stock price dipped after the ring's report came out. Shares are down |
| 0:28.1 | 2.6% in pre-market trading. So why? Marketplace is Nova Saffo is here to explain. Morning Nova? |
| 0:35.4 | Good morning, Sabri. What is going on here? |
| 0:38.4 | Okay, well, so it's a question of expectations, right? |
| 0:40.5 | There are really high ones on Wall Street, and Nvidia's got to meet them. |
| 0:43.7 | Now, make no mistake, business is booming because Nvidia is by far the predominant supplier |
| 0:47.9 | of advanced artificial intelligence chips, but big tech companies cannot get their hands |
| 0:52.7 | fast enough on these chips. |
| 0:54.1 | But among |
| 0:54.5 | the questions the company is facing is how long can this exponential growth it's on go on? |
| 1:00.0 | And investors are looking for any potential cracks in Nvidia's foundation, and the company |
| 1:04.2 | now has a couple of issues to deal with. One is that it's struggling to ramp up production |
| 1:08.7 | and make enough chips, and it relies on an outside chip |
| 1:11.6 | manufacturer. Now, Invidia just designs the chips. The other is that it has a new chip model |
| 1:16.4 | coming out, and there have been some reports of problems with this model. You're talking about |
| 1:22.2 | these Blackwell chips, highly anticipated by big tech companies. What did Invidia have to say about |
| 1:27.4 | these special new |
| 1:28.1 | chips? Well, Nvidia says there was a design flaw and there have been reports that the chips |
... |
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