Your portfolios in brief
NVIDIA, with its phenomenal trajectory and constant innovation, stands out as an indisputable leader in the field of technology and artificial intelligence (AI). Since its foundation in 1993, the company has evolved far beyond its roots in video game graphics to become a driving force in generative AI, transforming various industries on a global scale.
- Technological dominance and market performance in 2023
Cutting-edge innovations: At a now-famous event, NVIDIA unveiled its Blackwell GPUs, promising unprecedented advances with computing speeds four times faster than the previous generation and 25 times more energy-efficient. These superchips, developed to accelerate the development of AI, position NVIDIA at the forefront of technological innovation.
Outstanding stock market performance: NVIDIA (NVDA) shares have experienced spectacular growth, rising by around +250% year-on-year and even +80% since the start of 2024. This remarkable rise has propelled NVIDIA ahead of giants like Amazon in terms of market capitalization, with a valuation that has surpassed the symbolic threshold of $2,000 billion. Such stock market success testifies to investors' confidence and enthusiasm for the company's future.
Explosive growth and future prospects: NVIDIA closed the first quarter with a dazzling performance, driven by insatiable enterprise demand for AI, record quarterly profits, and the unveiling of its next-generation Blackwell platform. With revenues up 265% last quarter, CEO Jensen Huang expressed optimism that this growth will continue into 2025 and beyond.
- Why NVIDIA is an investment to watch
NVIDIA's dominant position in the field of generative AI and its role as a crucial supplier for companies engaged in AI confirm its strategic value in the technological ecosystem. Its ability to innovate and offer advanced AI solutions makes NVIDIA a must-have company for investors interested in future technologies.
NVIDIA's innovations, including the Blackwell GPUs and the Gr00t project, as well as its strategic collaborations with technology leaders, reinforce its competitive edge. This technological leadership, combined with revolutionary energy efficiency, puts NVIDIA in a strong position to face the environmental and operational challenges of AI.
Its commitment to energy efficiency, illustrated by the promise of superchips 25 times more energy-efficient, addresses the criticisms of AI's high power consumption. In addition, innovative projects such as Earth-2 Cloud demonstrate NVIDIA's commitment to using AI to tackle critical global issues such as climate change.
- Conclusion
Investing in NVIDIA means betting on a company at the forefront of technological innovation, whose stock market performance and record growth reflect substantial future growth potential. We are convinced that NVIDIA represents a wise strategic choice for our portfolio, anticipating its continuing role in shaping the digital and technological future. Its remarkable achievements in 2023, its technological advance, and its strategic vision for the future fully justify our confidence in and recommendation of this dynamic and promising stock.
Markets in brief
Monday
Dow: The index edged down 0.03% to close at 38,892.80 points.
NASDAQ: The index gained 0.03% to close at 16,253.96 points.
S&P 500: The broad index lost 0.04% to close at 5,202.39 points.
The session started on a positive note, but the initial enthusiasm quickly dissipated, with two of the three main indices ending slightly down. The lack of interest from investors, potentially distracted by the solar eclipse, was underlined by particularly low trading volumes. Despite this, the bond market showed more vivacity, marked by an escalation in yields, with the yield on 2-year US government bonds reaching 4.79%, its highest level in over four months.
The weekend also marks the start of the earnings season, with announcements expected from major financial institutions such as JPMorgan Chase, Citigroup, Wells Fargo and BlackRock. These results are particularly scrutinized in a context of high interest rates, likely to affect the performance and future strategies of the companies concerned.
- Stockss in brief
JPMorgan Chase (+0.52%): The bank benefited from the high rate environment, with Jamie Dimon's letter to investors anticipating a possible increase in the cost of money.
TSMC (+1.01%): The semiconductor giant saw its shares rise following the announcement of a $6.6 billion grant from the US government for a new site in Arizona.
Apartment Income REIT Corp (AIRC) (+22.42%): AIRC saw its shares jump after Blackstone's $10 billion buyout offer, indicating a delisting.
Tesla (+4.90%): Tesla gained momentum with Elon Musk's announcement of a robotaxi in early August, illustrating the company's ongoing innovation.
Spirit Airlines (+6.55%): Spirit Airlines adjusted its delivery schedule with Airbus, improving its liquidity in a difficult context following an aborted merger with JetBlue.
Tuesday
Dow: The index ended the day with a slight decline of -0.02%, closing at 38,883.67 points.
NASDAQ: The index made positive progress, gaining 0.32% to finish at 16,306.64 points.
S&P 500: The index edged up 0.14% to 5,209.91 points.
Wall Street sailed through an atmosphere marked by caution, as investors prepared for the announcement of a much-anticipated inflation report. The day saw a marked preference for investments considered safe, notably sovereign bonds, revealing a defensive strategy in response to the prevailing economic uncertainty.
Anticipation of the Consumer Price Index (CPI) report due the following day dominated minds, prompting anticipation of its implications for the future direction of the Fed's monetary policy. Economists' forecasts suggest a monthly slowdown in inflation, but an acceleration on an annual basis, which could influence the Fed's interest rate decision.
This session portrayed a market on watch, attentive to imminent economic data and their potential repercussions. Caution was the watchword, guiding investment choices towards sectors deemed safer in anticipation of significant monetary developments.
- Stockss in brief
3M (+0,74 %) : The industrial conglomerate stands out for its resilience, as investors favor safe-haven stocks amid economic uncertainty.
Nike (+1.11%): The sports equipment maker is showing signs of strength, benefiting from sector optimism despite a generally hesitant day on the markets.
Procter & Gamble (+0.40%): Consumption of basic necessities remains a safe haven, with P&G recording a modest but stable rise.
American Express (-1.91%): The company came under downward pressure following cautious comments from financial sector leaders on the economic outlook.
Visa (-0.37%) and JPMorgan Chase (-0.67%): Financial stocks encountered headwinds, reflecting concerns over future monetary policies.
Boeing (-1.89%): The aircraft manufacturer is suffering from lower-than-expected delivery results and regulatory investigations, leading to a significant drop in its share price.
Tesla (+2.25%): Tesla stands out positively after announcing an out-of-court settlement, avoiding a potential lawsuit over its driver assistance system.
Alphabet (+1.28%): Spurred on by technological innovation, Alphabet advanced after the announcement of a new chip dedicated to cloud and AI.
Moderna (+6.19%): Moderna made a remarkable leap following positive clinical results for a new vaccine, underlining the growth potential in the biotech sector.
Nvidia (-2.04%): Faced with increased competition in the semiconductors needed for generative AI, Nvidia's shares fell.
Wednesday
Dow: Dropped 422.16 points, or -1.09%, to end at 38,461.51.
S&P 500: The index slipped -0.95% to 5,160.64.
NASDAQ: The latter fell by -0.84% to close at 16,170.36.
With the exception of the energy sector, all sectors in the broad index finished lower, led by real estate, which lost 4.1%. The S&P 500, after a dazzling start to the year with a rise of over 10%, its best first-quarter gain in five years, stagnated in April in anticipation of the inflation report.
The March Consumer Price Index (CPI) rose by 0.4% on the month and 3.5% on the year, against estimates of 0.3% monthly and 3.4% annual. Core CPI, excluding volatile food and energy prices, accelerated by 0.4% month-on-month and rose by 3.8% year-on-year, against expectations of 0.3% and 3.7%, respectively.
Data now suggest only a 17% probability that the Fed will cut rates at its June meeting, according to CME's FedWatch tool. Investors are now betting that the first rate cut will probably take place at the central bank's September meeting.
The 10-year Treasury yield climbed above 4.5% following the inflation report, while the 2-year Treasury yield jumped to almost 5%.
- Stockss in brief
Dow (-1.70%) and Home Depot (-3.00%): These defensive stocks, generally less sensitive to economic fluctuations, had a difficult day, illustrating that even reputedly stable sectors are not immune to market turbulence.
Meta (+0.57%): Meta's shares rose, buoyed by the announcement of production of its new MTIA chip, designed for data storage centers and the development of artificial intelligence. This initiative is part of a wider trend of technology giants seeking to reduce their dependence on traditional semiconductor manufacturers.
Intel (-2.95%), Broadcom (-0.88%), and AMD (-2.13%): These semiconductor giants suffered losses, probably affected by Meta and Google's strategic moves to develop their own chip technologies.
Delta Air Lines (+2.28%): The company saw its shares rise after announcing better-than-expected results and optimistic forecasts for the current quarter, signalling strong demand ahead of the summer season.
Boeing (-1.96%): The stock suffered following revelations by a company engineer about safety compromises in the assembly of 787 Dreamliner and 777 aircraft, casting a shadow over the reputation and investor confidence in the aircraft manufacturer.
Macy's (+2.54%): The retail chain gained traction after announcing the appointment of two new directors as part of its agreement with Arkhouse Management, an investment company whose takeover bids were previously rejected.
Alibaba (+2.19%): The Chinese e-commerce giant saw its shares rise after co-founder Jack Ma praised the group's current management for its dynamic approach during a critical period, supporting the company's vision and strategy while he remains a significant shareholder.
Thursday
Dow: Slight fall of 0.01%, closing at 38,459.08 points. This stability reflects a certain caution among investors.
NASDAQ: Significantly up by 1.68%, reaching a record high of 16,442.20 points. The technology sector led the ascent, boosted by substantial gains in key companies.
S&P 500: Up 0.74%, closing at 5,199.06 points. The gain was attributed to widespread optimism, reinforced by favorable economic data.
The session was marked by positive momentum around the Producer Price Index (PPI), which rose less than expected, easing inflation fears. The rebound in technology stocks, notably Apple, Amazon and Nvidia, contributed to this optimistic trend, despite the challenges posed by inflation and monetary policy. While remaining attentive to the big banks' upcoming results, investors showed renewed interest in the technology sector, anticipating a potentially favorable earnings season.
- Stockss in brief
UnitedHealth (-1.85%): The market's reaction to sectors considered defensive led to a drop in their value, with UnitedHealth among the hardest hit.
Boeing and Morgan Stanley: suffered disruptions due to incidents and investigations, negatively influencing their shares.
Nvidia (+4.1%): Showed strong growth, testifying to investor confidence in the advanced technology sector.
Amazon (+1.7%): Reached a historically high level, a sign of its dominant market position and prospects for continued growth.
Alphabet (+2%): Thanks to its diversification and innovative strength, Alphabet's share price has also risen, underlining the appetite for technology giants.
Apple (+4.3%): Recorded a remarkable rise after announcing a transition to AI-driven chips for its Macs, marking its best performance since May 2023.
Friday
The Dow: Slid 225 points in the morning, down 0.6%.
S&P 500: down 0.7% at the start of the day.
Nasdaq: Opened down 0.9%.
Over the week as a whole, the S&P 500 and Dow Jones lost 0.7% and 1.7% respectively. The NASDAQ nevertheless stood out with a slight rise of 0.4%, testifying to the partial resilience of the technology sector.
- Stockss in brief
JPMorgan Chase (-3%): The bank revealed mixed quarterly results, with lower-than-expected interest income expected for 2024 and warnings of persistent inflationary pressure.
Wells Fargo (-1.1%): The bank also posted lower quarterly results, influencing its stock market performance.
Citigroup (+1%): Against the tide, Citigroup surprised positively by exceeding earnings forecasts.
Rising oil prices against a backdrop of tensions in the Middle East: An analysis
U.S. crude oil prices rose above $87 a barrel in response to growing tensions in the Middle East. Reports indicate that Israel is preparing for a possible direct attack from Iran, which could represent the most significant escalation since the Israel-Hamas conflict last October.
The price of West Texas Intermediate (WTI) for May delivery rose by $2.32 to $87.34 a barrel. Brent crude for June delivery climbed $2.13 to $91.86 a barrel, reflecting market nervousness over regional instability.
This follows reports that Iran is planning an attack on Israel. The reaction of the United States, restricting non-essential travel to Israel by its diplomatic staff, underlines the seriousness of the situation.
Analysts predict a possible surge in Brent crude oil prices to $100 a barrel if Iran directly attacks Israel. A disruption of the Strait of Hormuz could propel prices even higher, to between $120 and $130 a barrel.
Israel has warned that it will retaliate against any attack from Iranian territory. This situation highlights the close link between geopolitical tensions and world energy markets, with potentially far-reaching consequences for the global economy. Global players are closely monitoring the situation, aware of its potential impact on energy prices and the global economy.
