In a significant surge, stock futures skyrocketed on Thursday, primarily driven by technology shares, following Nvidia’s outstanding sales performance and robust forecast regarding the continued strong demand for its artificial-intelligence data center chips.
Nvidia’s Impressive Performance
Nvidia experienced a remarkable 13% increase after reporting fourth-quarter adjusted earnings of $5.16 per share, surpassing analysts’ expectations of $4.59 per share. The company’s revenue soared by 265% from the previous year, reaching $22.1 billion, surpassing analysts’ projections of $20.4 billion. Notably, data-center revenue saw an impressive surge of 409% during the period. Nvidia anticipates fiscal first-quarter revenue to reach $24 billion, exceeding analysts’ forecasts of $22.2 billion. CEO Jensen Huang remarked, “Accelerated computing and generative AI have reached a tipping point. Demand is rapidly growing globally across various companies, industries, and nations.”
Semiconductor Stocks Get a Boost
Following Nvidia’s stellar performance, other semiconductor stocks also witnessed a rally. Super Micro Computer saw a 13% jump, Arm Holdings rose by 9.9%, and Broadcom was up by 4.4%.
Challenges Faced by Rivian Automotive
Rivian Automotive is planning to reduce 10% of its salaried workforce after announcing a wider-than-expected fourth-quarter loss. The company stated that it expects to manufacture 57,000 electric vehicles in 2024, a decline from the previous year’s 57,232 units and below Wall Street’s predictions. Rivian highlighted economic and geopolitical uncertainties, particularly the impact of historically high interest rates, as factors shaping their outlook for 2024. Consequently, Rivian shares plummeted by 14%.
Lucid Group’s Struggles
Lucid Group observed a 6.2% decline after revealing fourth-quarter revenue of $157.2 million, down from $258 million in the previous year. The company also announced its intention to produce approximately 9,000 vehicles in 2024, falling short of consensus expectations.
Market Update Highlights
Synopsys Beats Earnings Expectations, Raises Forecast
Shares of Synopsys surged 5% after the electronic design automation software provider announced a better-than-expected fiscal first-quarter adjusted earnings of $3.56 a share. CEO Sassine Ghazi highlighted the role of artificial intelligence in driving customer investments in silicon and systems, setting them up for future growth. The company also raised its forecast for the fiscal year.
Etsy Faces Fourth-Quarter Earnings Miss
Etsy stock dropped 8.2% following the online marketplace’s fourth-quarter earnings report, which fell short of Wall Street estimates at 62 cents a share. The company cited a “slow start” to the first quarter, expecting a decline in gross merchandise sales compared to the previous year.
Royal Caribbean Optimistic About Earnings Guidance for 2024
Royal Caribbean saw a 6.4% increase in its stock after revising its earnings guidance for 2024. The cruise company expressed confidence in the demand and pricing environment for the upcoming year, noting significantly higher bookings compared to the same period last year.
Sunrun Reports Drop in Revenue, Stock Falls
Sunrun shares declined by 6.9% as the residential solar-power installer reported a fourth-quarter loss of $350 million and revenue of $516.6 million, below analysts’ expectations. This marked a decrease from $609.2 million in revenue recorded a year earlier.
Upcoming Earnings Reports
Stay tuned for earnings reports expected from Moderna, Intuit, Booking Holdings, Wayfair, Carvana, Block, PG&E, Dominion Energy, Live Nation, and Rocket Cos on Thursday.
