Your Portfolio in Brief
NVIDIA, founded in 1993 and based in Santa Clara, California, is a global leader in designing graphics processing units (GPUs) and semiconductor technologies. In recent years, it has established itself as a key player in artificial intelligence (AI) and high-performance computing—both rapidly growing sectors.
Key Highlights in 2024
• Exceptional Growth: NVIDIA reported revenue of $35.1 billion for the third quarter of its fiscal 2025, a 94% increase year-over-year. Net profit doubled, reaching $19.3 billion, exceeding analysts’ expectations.
• Blackwell and Hopper: Cutting-edge Chips: NVIDIA launched its new AI processor, Blackwell, which has seen demand outstrip supply. Sales of its current processor, Hopper H200, also surged significantly, solidifying the company’s dominance in the data centre market.
• Data Centre Boom: Revenue from the data centre division reached $30.8 billion, a 112% year-over-year increase.
• Growing Gaming Segment: NVIDIA generated $3.28 billion in revenue from its gaming segment, driven primarily by increased demand for GPUs used in PCs, consoles, and online gaming.
Why NVIDIA Is a Stock to Watch
1. AI Leadership: NVIDIA is at the forefront of the artificial intelligence revolution. Its chips are essential for companies like Microsoft, OpenAI, and Oracle, which are developing groundbreaking AI applications.
2. Robust Growth: Fourth-quarter forecasts are set at $37.5 billion, reflecting a 70% annual increase despite a sequential slowdown.
3. Technological Dominance: Products like Blackwell reinforce NVIDIA’s market position, while its integration of hardware and software provides a sustainable competitive advantage.
4. Expansion into New Segments: NVIDIA is exploring the PC processor market to compete with Intel, AMD, and Apple, while capitalizing on the growing demand for AI applications in edge devices such as smartphones.
Conclusion: Outstanding Performance in 2024
With a year-to-date performance of +190%, NVIDIA has demonstrated resilience and leadership in key sectors like artificial intelligence and data centres. Its central role in technological advancements, combined with its consistent ability to exceed expectations, makes it one of the best stocks to hold.
NVIDIA dominates the microprocessor market with its Hopper range, including the H100, currently the industry’s flagship and most in-demand products, with a unit price reaching tens of thousands of dollars. In March, the company unveiled Blackwell, a next-generation GPU touted as the world’s most powerful chip. Deliveries are set to begin this quarter and accelerate in the next fiscal year. According to management, demand for Blackwell will exceed supply for several quarters in 2024.
These achievements confirm NVIDIA’s unique status as a visionary company shaping the foundation of the next industrial revolution. The company is poised for strong growth over the next two years, driven by rapidly improving product supply.
Market Brief
Monday
• Dow: The index fell 0.2%, closing at 34,050.67 points.
• NASDAQ: The index rose 0.6% to 13,500.25 points, driven by a sharp increase in Tesla’s stock.
• S&P 500: The broad index gained 0.4%, closing at 4,350.50 points, supported by a rebound in technology stocks.
Tesla Leads on Autonomous Driving Prospects
Tesla (TSLA) surged 5%, continuing its post-election rally. This movement was driven by reports suggesting the Trump administration may ease regulations on autonomous vehicles, directly benefiting the electric vehicle manufacturer.
NVIDIA Under Pressure Ahead of Quarterly Results
Investors are eyeing NVIDIA’s (NVDA) upcoming results on Wednesday, expected to provide key insights into the health of the artificial intelligence sector, a driver of recent market gains. The stock closed down 1%, weighed by concerns over production issues with its Blackwell chip.
Energy Sector Rises as Oil Prices Surge
Energy stocks (XLE) climbed as oil prices jumped over 3%, supported by a production halt at Norway’s largest oil field and escalating tensions in the Ukraine-Russia war.
Tech Sector Tensions from Trump Administration Appointments
President-elect Donald Trump’s cabinet picks continue to stir the tech sector. The nomination of Brendan Carr, a critic of major firms like Meta and Apple, to head the FCC drew attention. Additionally, the potential acquisition of Bakkt (BKKT) by Trump Media & Technology Group boosted DJT stock by 16% and Bakkt by an astonishing 169%.
Cryptocurrencies Rebound
Bitcoin (BTC-USD) regained ground, reaching $91,000 after experiencing its steepest correction since the election. This recovery reflects renewed investor confidence in digital assets, supported by growing interest in blockchain technology under the new administration.
Stocks in Brief
• Tesla (TSLA): +5%, closing at $346.00, driven by favourable prospects for autonomous vehicles.
• NVIDIA (NVDA): -1%, closing at $140.15, affected by concerns about Blackwell chips.
• Trump Media & Technology Group (DJT): +16%, after discussions about acquiring Bakkt (BKKT).
• Bakkt (BKKT): +169%, following negotiations with DJT.
• Chevron (CVX): +3.2%, supported by rising oil prices.
• Super Micro Computer (SMCI): +16%, surging after a Barron’s report indicated the AI server manufacturer plans to file its annual report to avoid delisting from NASDAQ.
• S&P/TSX Composite Index (TSX): +0.35%, closing at 24,976.94 points, supported by gains in gold and oil.
• Canadian Dollar (CAD): Valued at $USD 0.7121, up from $USD 0.7103 on Friday.
• Crude Oil: +$2.14, reaching $69.16 per barrel.
• Natural Gas: +$0.15, settling at $2.97 per million BTU.
• Gold: +$44.50, reaching $2,614.60 per ounce.
• Copper: +$0.06, reaching $4.12 per pound.
Tuesday
• NASDAQ: The index gained 1.04%, closing at 18,987.47 points, primarily supported by NVIDIA and other tech stocks.
• S&P 500: The broad index rose 0.40%, ending at 5,916.98 points.
• Dow: The index fell 0.28%, closing at 43,268.94 points, dragged down by losses in industrials and financials.
NVIDIA and Tech Stocks Lead Ahead of Anticipated Results
NVIDIA (NVDA) surged 4.89%, continuing its ascent ahead of Wednesday’s earnings release. NVIDIA’s performance reflects expectations for continued AI spending by major tech companies like Microsoft, Meta, and Alphabet. This momentum also supported Amazon (+1.44%) and Meta (+1.21%), while Tesla (+2%) extended its monthly rally, up 38% since early November.
Walmart Boosts Confidence in U.S. Consumer Spending
Walmart (WMT) gained 3% after reporting better-than-expected quarterly results and raising its annual forecast, highlighting confidence in holiday season consumer spending. This announcement reassured investors about the health of U.S. households.
Geopolitical Tensions: Russia and Ukraine
Markets opened lower following news of escalations in Ukraine, where Ukrainian forces used U.S. missiles to target warehouses in Russia, intensifying geopolitical tensions. While these developments caused initial volatility, investors quickly refocused on major tech earnings.
Bond Market and Gold Rise Amid Caution
U.S. Treasury yields fell to 4.20% before rebounding to 4.28%, as investors sought safe-haven assets. Gold also rose, affirming its role as a refuge amid geopolitical uncertainty.
October Inflation: Gas Prices Drive a Rebound
In October, Canada’s inflation rate increased from 1.6% to 2%, in line with economists’ expectations. This rise was primarily due to a less pronounced drop in gasoline prices compared to September. Despite this, the Bank of Canada is expected to maintain its rate-cutting plan, with the next announcement scheduled for December 11, following Q3 GDP data and November employment statistics.
Inflation Breakdown
• Housing: Prices rose more slowly at 4.8% in October, down from 5% in September. Mortgage interest costs eased due to lower rates but remain a key inflation driver. Rents, while rising more slowly (+7.3% in October vs. +8.2% in September), remain high.
• Groceries: Food prices rose for the third consecutive month, reaching +2.7% in October from +2.4% in September.
• Property Taxes: Increased by 6%, marking the most significant rise since 1992.
Despite signs of slowing inflation in some sectors, challenges remain in others, notably food. Upcoming Bank of Canada decisions will be crucial to balancing economic dynamics and providing relief to the Canadian economy.
Stocks in Brief
• NVIDIA (NVDA): +4.89%, ahead of highly anticipated AI-focused results.
• Walmart (WMT): +3%, on strong quarterly results and optimistic forecasts.
• Tesla (TSLA): +2%, extending its 38% monthly rally, the best since January 2023.
• Meta Platforms (META): +1.21%, supported by increased AI spending.
• Amazon (AMZN): +1.44%, also benefiting from AI momentum.
• Lowe’s (LOW): -4.60%, hurt by disappointing results in the individual segment.
• Netflix (NFLX): +2.87%, reaching a record after a live sports event drew 108 million viewers.
• S&P/TSX Composite Index (TSX): +0.14%, closing at 25,010.77 points, supported by mining stocks.
• Canadian Dollar (CAD): Valued at $USD 0.7153, up from $USD 0.7121 on Monday.
Wednesday
• Dow: The index rose 0.32%, closing at 43,408.47 points.
• S&P 500: The index finished flat (+0.01%), closing at 5,917.11 points.
• NASDAQ: The index dipped slightly by 0.11%, settling at 18,966.14 points.
Amid geopolitical tensions and mixed results in the retail sector, markets remain focused on developments in artificial intelligence, with NVIDIA at the centre of all expectations. Investors are also closely monitoring the potential implications of a Russian-proposed peace plan, which could influence market dynamics in the coming days.
Semiconductor Sector Declines Ahead of NVIDIA Results
The semiconductor sector recorded losses ahead of NVIDIA’s results. Broadcom (-1.27%), AMD (-1.28%), and Intel (-0.79%) all closed lower. Qualcomm (-6.34%) was particularly impacted after unveiling diversification plans that failed to impress investors.
Bitcoin Nears $95,000 Before Slight Retreat
Bitcoin hovered near $95,000 on Wednesday before retreating slightly, weighing on cryptocurrency stocks. Riot Platforms gained 0.98%, while Coinbase dropped 1.40%.
Retail Sector Under Pressure After Target’s Disappointing Results
Target (TGT) plummeted 21%, its largest miss in two years. The decline was attributed to slowing discretionary demand and cost pressures, prompting the company to revise its annual forecast downward. This disappointment weighed on the retail sector broadly, with the SPDR S&P Retail ETF (XRT) falling nearly 1%. Among discount retailers, Dollar Tree dropped 2.6%, Dollar General 4.2%, and Five Below 1.7%. Amazon also lost nearly 1%, reflecting the widespread impact of bad news on the sector.
Stocks in Brief
• NVIDIA (NVDA): -0.99%, closing at $315.85 before posting better-than-expected results after hours.
• Target (TGT): -21.41%, hit by disappointing results and a downward forecast revision.
• Williams-Sonoma (WSM): +27.54%, after impressive quarterly results and an upward forecast revision.
• Tesla (TSLA): +2%, continuing its 38% monthly surge.
• Walmart (WMT): +3%, supported by optimistic holiday forecasts.
• Broadcom (AVGO): -1.27%, down ahead of NVIDIA’s results.
• Qualcomm (QCOM): -6.34%, dropping after poorly received strategic announcements.
• S&P/TSX Composite Index (TSX): +0.10%, closing at 25,036.46 points, buoyed by energy stocks.
• Canadian Dollar (CAD): Slight gain to $USD 0.7154, compared to $0.7153 on Tuesday.
Thursday
• Dow: Gained 1.06%, closing at 43,870.35 points.
• S&P 500: Rose 0.53%, finishing at 5,948.71 points.
• NASDAQ Composite: Edged up 0.03%, ending at 18,972.42 points.
NVIDIA reported better-than-expected quarterly results, with ambitious forecasts highlighting continued robust demand for its GPUs, essential for generative artificial intelligence. However, concerns over slightly compressed margins limited the stock’s gains, which rose 0.53% to close at $146.67. Analysts noted ongoing high demand for NVIDIA’s new Blackwell chips, which are expected to exceed supply for months.
Despite NVIDIA’s results, the tech sector faced challenges. Alphabet plunged 4.56% after a U.S. government recommendation to a federal judge to mandate the divestiture of its Chrome browser over antitrust concerns. Amazon slipped 2.2%, while Snowflake soared 33% after beating Wall Street estimates and raising its revenue guidance. Salesforce also gained 3.1%, benefiting from a broader interest in SaaS providers.
Amid diversifying strategies, investors turned to sectors expected to benefit from economic growth. Financials gained, with Goldman Sachs up 2.44% and JPMorgan Chase rising 1.65%, as a potential Trump presidency raised hopes for regulatory easing. Cyclical stocks like Caterpillar (+2.12%), Nike (+2.37%), and Disney (+0.40%) also performed well.
Bitcoin hits a milestone
Bitcoin reached a record high of $99,000, driven by optimism surrounding potential supportive regulation for digital assets under a Trump administration.
Bonds fall as investors shift focus
The yield on the 2-year U.S. Treasury note climbed to 4.35% from 4.31% as investors reduced bond holdings in favour of equities.
Stocks in brief
• NVIDIA (NVDA): +0.53%, sustained by strong demand for AI chips despite margin concerns.
• Alphabet (GOOGL): -4.56%, hit by antitrust scrutiny regarding its Chrome browser.
• Amazon (AMZN): -2.2%, pressured alongside broader tech sector weakness.
• Snowflake (SNOW): +33%, after surpassing estimates and raising revenue forecasts.
• Salesforce (CRM): +3.1%, benefiting from SaaS growth.
• Goldman Sachs (GS): +2.44%, gaining from optimism in financials.
• Caterpillar (CAT): +2.12%, bolstered by cyclical sector strength.
• Bitcoin (BTC): Crossed $99,000, marking an all-time high.
• Ulta Beauty (ULTA): -1.31%, after a downgrade from William Blair.
• S&P/TSX Composite Index (TSX): +0.30%, supported by gains in energy and materials.
Friday
• Dow: Up 0.2%, or 101 points.
• S&P 500: Marginally higher.
• NASDAQ Composite: Down slightly by 0.1%.
Despite this mixed performance, all three major indices are on track for a positive week, with the NASDAQ Composite posting a notable weekly gain of 1.56%. This marks a turnaround from the previous week, when Wall Street's postelection rally stalled.
Conclusion: A Resilient Week for Wall Street
This week showcased Wall Street’s ability to navigate mixed signals, balancing strong corporate earnings with broader macroeconomic and geopolitical uncertainties. NVIDIA's stellar performance reaffirmed investor enthusiasm for AI-driven growth, while the broader tech sector faced pressure from regulatory scrutiny and profit-taking.
Cyclical and financial stocks shone as investors sought diversification, signaling confidence in an accelerating economy under the potential policy direction of a Trump administration. Bitcoin’s rally past $99,000 highlighted continued optimism in digital assets, even as volatility in the tech and retail sectors reminded investors of market fragility.
With the Dow, S&P 500, and NASDAQ all poised for weekly gains, the markets closed on a cautiously optimistic note, reflecting a renewed focus on strategic positioning as the year-end approaches. The resilience seen across sectors signals a dynamic yet promising environment for investors.
