PART OF THE WEEK: Nvidia investors hoping for bumper results

Nvidia became the third most valuable company on Wall Street this week, just behind tech giants Microsoft and Apple.

The US chipmaker saw its value more than triple by 2023 as it benefited from continued demand for artificial intelligence.

Shares have continued to rise this year, and investors will be hoping for more when Nvidia reports its quarterly earnings on Wednesday.

The bar has been set high after CEO Jensen Huang said the group expects to achieve a turnover of £16 billion for the last three months of 2023.

This is around £11 billion more than the group earned in the last three months of 2022.

And pressure is also mounting after the company beat analyst expectations for revenue and profit in the first nine months of the year.

Some analysts have said this could be to its detriment as expectations were too high.

“The AI ​​hype train is not just moving, it’s delivering, as far as Nvidia is concerned,” said Danni Hewson, head of financial analysis at AJ Bell.

“Momentum investors appear keen to get in, although value seekers are likely to be more cautious given the high valuation that leaves little room for error.”

For much of the past thirty years, Nvidia’s success has come from computer games, with chips from Call of Duty and Counter-Strike, for example.

But the chips are a favorite for AI, which has become the focus of Silicon Valley’s biggest players. Nvidia has a market capitalization of £1.4 trillion.

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