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• NVIDIA template before numbers
• Cathie Wood dumps NVIDIA stock
• I hope for the new chip for the Chinese market
NVIDIA opens third quarter books
The time has come on November 16: American chip group NVIDIA will publish its balance sheet for the third quarter of 2022. In the previous quarter, the technology company had to accept a significant decline in profits and missed its sales target. “We are navigating our supply chain transitions in a challenging macro environment and we will get through this,” CEO Jensen Huang said of the weak data, according to a press release. “Accelerated computing and AI, pioneered by our company, are transforming industries.”
Analysts expect a decline in profits and sales
While Huang is also optimistic about the company’s future, market experts are skeptical. Analysts expect NVIDIA to post earnings of $0.712 per share for the quarter ended October 31st. In the same quarter a year ago, the group was able to earn US$1.17 per share. In terms of sales, strategists expect $5.81 billion, after $7.1 billion in the third quarter of 2021.
Cathie Wood dumps multiple NVIDIA stocks
Cathie Wood, the founder and CEO of the investment company ARK Invest, also no longer looks so positive on NVIDIA shares. On November 4, the investor, which made a name for itself with its innovative ETFs at the start of the pandemic but has recently been repeatedly criticized for the funds’ poor performance, sold a total of 192,337 shares of NVIDA. Wood’s flagship ETF, the ARK Innovation ETF, now has 167,914 fewer shares in the chip developer. Only on October 20, 50,252 shares were sold. That leaves the exchange-traded fund, which once included NVIDIA among its top holdings, at just 514,972 shares. Some shares of NVIDIA also fell out of ARK’s Next-Gen Internet ETF. Here, Wood sold 24,423 NVIDIA shares, leaving 117,698 titles.
Incidentally, the star investor has already done something similar in the past, as Bloomberg reports. For example, ARK sold some shares of NVIDIA shortly before the company opened its books for the second quarter and announced its disappointing sales guidance.
NVIDIA stock: from fake star to problem child
If NVIDIA stock was considered a high flyer in the last two years, benefited from all kinds of trends such as cloud gaming and crypto mining and operates its own metaverse platform with Omniverse, the newspaper has had to do in the months the last one – analogous to the entire tech industry – ruffles a lot of feathers. Since the beginning of the year, NVIDIA shares have already fallen 46.45 percent on the NASDAQ and recently cost $157.50 (closing price on November 10, 2022). The current price level is a long way from the all-time high of US$346.47 from November 2021.
New Chinese chip could give NVIDIA stock a boost
However, the announcement that NVIDIA intends to offer a new chip in China that can be manufactured and distributed in compliance with US government export control rules may provide a breath of fresh air. The restrictions announced in early September are intended to prevent US chip companies such as NVIDIA or its competitor AMD from exporting high-performance chips, which are mainly required for artificial intelligence applications, to China. At NVIDIA, the regulations have so far affected the A100 and H100 series. The new chip, called the A800, is said to be the first product from a semiconductor company to be developed for the Chinese market and meet the new regulations, according to Reuters news agency. After the export restrictions were announced, the company, which is based in Santa Clara, California, said it expected a drop in sales of up to US$400 million as a result.
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