Sectors: Technology
AI behemoth NVDA reported at 8:20 a.m. this morning and the report is solid. Q4 revenue and forecast were ahead of targets, and the CEO’s comments pointed to strong demand for their new products, implying that the A1 buildout remains upbeat.
SDR –11.77%: Hit today after revenue growth trailed expectations for the half, which is never good for a growth stock at this stage of its life, though we don’t think the thesis is broken.
We covered NXL earlier in the month here post a soft trading update that saw the stock “hit for six”. At that time, we added NXL to our Hitlist for the Emerging Companies Portfolio, but we’re yet ready to hit the buy button.
Baidu is often called “China’s Google” and is a major AI research and development player. The Beijing-based $US30bn company has an advanced AI division, Baidu AI Cloud, and has developed the Ernie AI model, which is a competitor to OpenAI’s ChatGPT.
On Monday, TCEHY tumbled over 7% as Trump weighed on China-facing stocks. Tencent leverages AI in gaming, cloud computing, and social media platforms (WeChat).
The Chinese e-commerce giant announced its results on Friday, saying it planned to invest further in the AI sector but did not provide an exact figure at the time—a result that has been largely ignored compared to recent macro events.
NVDA has become the flagship of the first chapter of the AI evolution, with the company swelling to a $US3.2bn behemoth in just a few years.
RUL +8.02% Recorded its biggest half year revenue number in the company’s history and earnings that were inline with expectations.
WTC –20.09%: Whacked today on downgraded guidance and the resignation of four non-exec Directors from the board. Lots of headlines about this which will provide fodder for the media.
