Nvidia reported sales of $22.1 billion in its fiscal 2024 fourth quarter, an increase of 265% versus the year ago period and well above management's guidance.
The company believes that escalation will continue as total sales are expected to be about $24 billion in the current quarter with gross profit margin expanding to almost 76% in Q1 of fiscal 2025.
Nvidia is a leading technology company that has been at the forefront of advancing artificial intelligence (AI) and data center segment. In its fiscal 2024 fourth quarter, Nvidia reported sales of $22.1 billion, an increase of 265% versus the year ago period and well above management's guidance. The company believes that escalation will continue as total sales are expected to be about $24 billion in the current quarter with gross profit margin expanding to almost 76% in Q1 of fiscal 2025. Nvidia has been a top performer for investors, and its stock price has soared above $788. However, some experts believe that disruptors are often disrupted and caution against investing too heavily in the company.
The company has been a top performer for investors and its stock price has soared above $788. However, experts caution against investing too heavily in the company.
Nvidia reported sales of $22.1 billion in its fiscal 2024 fourth quarter, an increase of 265% versus the year ago period and well above management's guidance.
The data center segment is the focus right now with revenue more than 400% higher than the prior year period.
Nvidia believes that escalation will continue as total sales are expected to be about $24 billion in the current quarter, with gross profit margin expanding to almost 76% in Q1 of fiscal 2025.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article is deceptive in several ways. Firstly, the title claims that Nvidia is the top stock to hold forever which implies it will never go down and there are no risks involved. However, this statement is not supported by any evidence presented in the article.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that Nvidia is the clear leader in advancing AI and citing data from Statista without providing any context or evidence for this claim. Additionally, the author makes a false dilemma by suggesting that there are only two options: either invest in Nvidia now or wait until it's too late to buy. The article also contains inflammatory rhetoric when the author states that self-driving vehicles becoming more mainstream is just one reason why Nvidia has potential for other areas to balloon, implying that this will happen automatically and without any effort from Nvidia. Finally, the author uses a slippery slope fallacy by suggesting that if earnings expand quickly in the future, then investors should expect a decrease in P/E multiples.
The company is the clear leader in advancing AI
Data center revenue was more than 400% higher than the prior year period
self-driving vehicles becoming more mainstream is just one reason why Nvidia has potential for other areas to balloon
Bias
(85%)
The article is biased towards Nvidia stock and its growth potential. The author uses language that depicts Nvidia as the clear leader in advancing AI technology and highlights the company's impressive sales figures for its data center segment. Additionally, the author mentions that other business segments also increased revenue year over year, but only focuses on Nvidia's successes.
Data center revenue was more than 400% higher than the prior year period
Nvidia is the clear leader in advancing artificial intelligence (AI)
The company believes that escalation will continue as management believes total sales will be about $24 billion in the current quarter
Site
Conflicts
Of
Interest (50%)
Howard Smith has a financial interest in Nvidia as he is an employee of The Motley Fool which owns shares of the company.
Author
Conflicts
Of
Interest (50%)
Howard Smith has a conflict of interest on the topics Nvidia and artificial intelligence (AI) as he is an analyst at Statista which provides data on these topics.
The company is expected to dominate the industry and lift productivity and profitability of businesses worldwide.
Rob Arnott believes Nvidia's market cap is too high versus its earnings.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the author presents Nvidia as a historic pioneer whose time has come and will dominate the artificial intelligence revolution en route to lifting productivity and profitability of businesses worldwide. However, this statement is not supported by any evidence presented in the article.
Most of all, he adds, it's wrong to think that We can pay any price because these companies can achieve stupendous profits in due course. That's usually not true.
The notion underpinning Nvidias rise, that a single or even a couple of trailblazers that initially rule a new technology will maintain overwhelming leadership and deserve epic valuations, is another in a long series of big market delusions.
Fallacies
(85%)
The article contains an informal fallacy known as 'appeals to authority'. The author cites two experts who provide their opinions on Nvidia's potential for future success. However, the expert opinions are not based on any evidence or research presented in the article and therefore cannot be considered a reliable source of information.
Bias
(85%)
The author is expressing skepticism towards the idea that Nvidia will maintain its dominant position in the AI industry. He cites examples of companies like Palm and BlackBerry losing their dominance in handheld technology and Apple's iPhone becoming more popular than them. The author also mentions that competition eventually drives down a new industry's initially sterling profitability, which could happen to Nvidia as well.
Amidst the widespread drumbeat of praise, skeptical voices are few. But we’ve heard many times before that the first mover in a change-the-world thrust forward will maintain its top position far into the future, only to witness the shooting stars get smothered by disruptors lured by the leader's rich profitability
Arnott describes competition eventually driving down a new industry’s initially sterling profitability. The biggest beneficiaries are customers that bank big productivity gains from advances in software or online advertising algorithms, and sectors enduring champs are players that keep innovating so that their products help customers work faster, better and cheaper
Nvidia is widely viewed an historic pioneer whose time has come
The risk Nvidia will follow so many others that have fallen from glory is much too great to justify its current PE (now at nearly 70)
Site
Conflicts
Of
Interest (50%)
Shawn Tully has a financial tie to Nvidia as he is an author for Fortune.com which is owned by Time Warner Inc., a company that may have competing interests with Nvidia in the artificial intelligence and market cap topics.
Author
Conflicts
Of
Interest (50%)
Shawn Tully has a financial tie to Nvidia as he is an author for Fortune.com which covers the company's stock price and performance.
The article is deceptive in several ways. Firstly, the title implies that buying Nvidia shares may be too late when there is no evidence to support this claim. Secondly, the author quotes Wall Street analysts without disclosing their sources or providing any context for their opinions. This makes it difficult to determine if they are reliable or not.
The title implies that buying Nvidia shares may be too late when there is no evidence to support this claim.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Wall Street says something without providing any evidence or context for what Wall Street is or how it arrived at its conclusion. Secondly, the author presents a dichotomous depiction of buying Nvidia shares as either too late or not too late, which oversimplifies the complexities of investing decisions and ignores other factors that may be relevant. Lastly, the article contains inflammatory rhetoric by using phrases such as 'too late' to create a sense of urgency and fear in readers.
Published Sun, Feb 25 20247:10 PM ESTUpdated 1 Min Ago
Wall Street says it’s too late to buy Nvidia shares.
Nvidia has been one of the best-performing stocks in recent years.
Bias
(85%)
The author uses language that dehumanizes the subject of the article by referring to Nvidia as a 'machine', which could be seen as an example of ideological bias. Additionally, there is no evidence provided for any claims made in the article.
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Site
Conflicts
Of
Interest (50%)
Weizhen Tan has a financial interest in Nvidia as she is an employee of CNBC which owns the site where this article was published. This could potentially compromise her ability to report on Nvidia shares objectively.
Author
Conflicts
Of
Interest (50%)
Weizhen Tan has a conflict of interest on the topic of Nvidia shares as she is reporting for CNBC which covers Wall Street opinions.
Nvidia reported another quarter of explosive growth with revenue and net income climbing into the billions of dollars. The company's AI chip leader scored big as more companies flocked to buy its top-performing chip and related products and services.
Amazon Web Services (AWS) is the world's leading cloud service provider, driven by Nvidia GPUs for AI development. AWS offers clients a wide variety of cloud solutions in areas such as AI, investing in technology infrastructure, and supporting clients across their projects.
Super Micro Computer uses building blocks method to construct its products and monitors Nvidia product development to ensure compatibility with the world's fastest chips. The company has benefited from close work with leading chipmakers like Nvidia, Advanced Micro Devices, and Intel in recent times.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in that it suggests that investing in Amazon and Super Micro Computer will provide the same benefits as owning Nvidia stock. However, this is not true because while both companies work with Nvidia and benefit from its growth, they are not directly related to the AI chip leader's revenue or future prospects.
The article suggests that investing in Amazon and Super Micro Computer will provide the same benefits as owning Nvidia stock. However, this is not true because while both companies work with Nvidia and benefit from its growth, they are not directly related to the AI chip leader's revenue or future prospects.
The article states that AWS offers clients a wide variety of cloud solutions and in recent times has put the focus on AI. This implies that AWS is primarily an AI-focused company when in fact it offers a range of services beyond just AI.
Fallacies
(85%)
The article contains an appeal to authority fallacy by stating that Nvidia's revenue and net income have reached a record at more than $22 billion. The author also uses inflammatory rhetoric when they describe the explosive growth of Nvidia's AI chip leader, without providing any evidence or context for this claim.
Nvidia's revenue and net income have reached a record at more than $22 billion.
Bias
(85%)
The article is biased towards the idea that investing in companies that work with Nvidia can provide similar benefits to owning Nvidia stock. The author uses examples of Amazon and Super Micro Computer as evidence for this claim.
Amazon's AWS offers clients a wide variety of cloud solutions, and in recent times, it’s put the focus on AI, investing in technology infrastructure and supporting clients across their AI projects.
Site
Conflicts
Of
Interest (50%)
The author has a conflict of interest with Nvidia as they are promoting alternatives to buying Nvidia. The article also mentions Super Micro Computer which is currently under investigation for alleged ties to Chinese espionage.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of Nvidia as they are an investor in the company. The article also mentions Amazon Web Services (AWS) and Super Micro Computer which could be potential competitors to Nvidia.
