US Stocks Show Mixed Signals with Software Stocks Supporting Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: stocktwits
- Strong Software Performance: Snowflake's stock rose 2.3% after Citi raised its price target from $270 to $280, indicating growing momentum in the AI sector, which bolstered investor confidence in the software industry.
- Divergent Market Sentiment: While the Dow Jones increased by 0.03%, the S&P 500 fell by 0.5% and the Nasdaq Composite declined by 1.2%, reflecting concerns over semiconductor stocks, particularly Nvidia's 5.5% drop that dampened overall sentiment.
- Geopolitical Impact: Investors are closely monitoring the progress of U.S.-Iran nuclear negotiations, with Iran stating that talks have been “very intense and serious,” which could influence market sentiment and investment decisions ahead of key economic data releases.
- Economic Data Expectations: The market is awaiting the release of crucial U.S. economic data, including the Producer Price Index (PPI) and Chicago Purchasing Managers Index (PMI), which are expected to significantly impact future market trends.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 195.560
Low
200.00
Averages
264.97
High
352.00
Current: 195.560
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NVIDIA's AI Growth Continues to Surge Following Impressive Q4 Results
NVIDIA's Q4 Earnings Performance: NVIDIA's Q4 earnings report for fiscal 2026 shows strong revenue growth driven by AI, with a revenue of $68.3 billion, surpassing market expectations and indicating robust cash flow and investment potential.
Market Segments Growth: The company experienced significant growth across critical markets, particularly in data centers, automotive, and gaming, with data center revenue accounting for over 90% of total revenue and growing by 75% year-over-year.
Future Projections: Analysts project continued strong performance for NVIDIA, forecasting $78 billion in revenue for Q1 FY 2027, reflecting a 14.7% sequential increase and a 77% year-over-year growth, excluding China.
Investor Sentiment and Stock Outlook: Analysts maintain a bullish outlook on NVIDIA's stock, with a consensus target price suggesting significant upside potential, supported by strong cash flow and a healthy balance sheet, positioning the company well for future growth.
See More
Nvidia's Q4 Results Exceed Expectations Significantly
- Strong Performance: Nvidia reported an adjusted earnings per share of $1.62 for the quarter ending January 25, with revenue soaring 73% year-over-year to $68.13 billion, significantly exceeding Wall Street's forecast of $65.91 billion, indicating robust market demand and execution.
- Data Center Revenue Surge: Data center revenue reached $62.13 billion, surpassing expectations of $60.36 billion, reflecting a surge in enterprise demand for AI computing, further solidifying Nvidia's leadership in the AI sector.
- Optimistic Outlook: The company anticipates revenue of $78 billion for the upcoming fiscal first quarter, excluding any revenue from China, showcasing confidence in global markets while also indicating a cautious stance towards the Chinese market.
- Dividend Announcement: Nvidia declared a quarterly dividend of $0.01 per share to be paid on April 1, enhancing investor confidence and demonstrating the company's ability to return value to shareholders supported by strong cash flow.
See More
Analysts Claim Nvidia is Massively Undervalued
- Market Underestimation: Dan Ives from Wedbush Securities pointed out that Wall Street analysts have severely underestimated Nvidia's valuation, particularly ahead of the upcoming fourth-quarter earnings report, indicating a neglect of the company's potential.
- Surge in AI Demand: Ives emphasized that with the skyrocketing demand for artificial intelligence, Nvidia's chips play a crucial role in driving the AI revolution, making its future earnings pivotal.
- Performance Expectations: Ives anticipates a 'gold medal performance' from Nvidia, reflecting not only his confidence in the company's strong earnings but also potentially influencing investor perceptions of its stock.
- Stock Price Reaction: At the time of writing, Nvidia's shares were trading 2% higher, indicating a positive market response to the optimistic expectations surrounding the upcoming earnings report and analyst sentiments.
See More
Salesforce Reports Strong Q4, Announces $50 Billion Buyback
- Strong Earnings: Salesforce reported a revenue of $41.5 billion for fiscal Q4, marking a 10% year-over-year increase that surpassed analyst expectations, indicating the company's sustained growth potential in the software market.
- Robust Cash Flow: The company achieved a 15% increase in operating cash flow to $15 billion and a 16% rise in free cash flow to $14.4 billion for fiscal 2026, reflecting its financial health under a $190 billion market capitalization.
- Buyback Program: Salesforce announced a $50 billion share repurchase authorization, having returned $12.7 billion in stock buybacks and $1.6 billion in dividends in fiscal 2026, which enhances investor confidence and could support a rebound in stock price.
- Cautious Outlook: Despite a 14% year-over-year growth in remaining performance obligations to $72.4 billion, management's revenue guidance for fiscal 2027 is only $45.8 to $46.2 billion, indicating a cautious stance on future growth that may affect market perceptions of its valuation.
See More
Indian Markets Set for Flat Start Amid IT Stock Concerns
- Market Opening Expectations: Indian markets are set for a flat start on Friday, with Nifty futures trading at 25,547.5 points, close to Thursday's close of 25,496.55 points, reflecting restrained sentiment due to a U.S. tech sell-off and subdued Asian cues.
- IT Stock Pressure: Indian IT stocks have lost about 20% in February amid fears of AI-related disruptions, increasing market focus on these beleaguered stocks, especially against the backdrop of a broader decline in global tech stocks.
- Foreign Investment Trends: On Thursday, foreign portfolio investors offloaded domestic equities worth 34.66 billion rupees (approximately $380.96 million), while domestic institutional investors purchased shares worth 50.32 billion rupees, indicating a shift in market liquidity dynamics.
- Oil Price Retreat Impact: Oil prices retreated from nearly seven-month highs following indirect talks between the U.S. and Iran over nuclear issues to avert conflict, easing supply disruption concerns that could influence overall market sentiment.
See More
US Stocks Show Mixed Signals with Software Stocks Supporting Market
- Strong Software Performance: Snowflake's stock rose 2.3% after Citi raised its price target from $270 to $280, indicating growing momentum in the AI sector, which bolstered investor confidence in the software industry.
- Divergent Market Sentiment: While the Dow Jones increased by 0.03%, the S&P 500 fell by 0.5% and the Nasdaq Composite declined by 1.2%, reflecting concerns over semiconductor stocks, particularly Nvidia's 5.5% drop that dampened overall sentiment.
- Geopolitical Impact: Investors are closely monitoring the progress of U.S.-Iran nuclear negotiations, with Iran stating that talks have been “very intense and serious,” which could influence market sentiment and investment decisions ahead of key economic data releases.
- Economic Data Expectations: The market is awaiting the release of crucial U.S. economic data, including the Producer Price Index (PPI) and Chicago Purchasing Managers Index (PMI), which are expected to significantly impact future market trends.
See More
NVIDIA's AI Growth Continues to Surge Following Impressive Q4 Results
NVIDIA's Q4 Earnings Performance: NVIDIA's Q4 earnings report for fiscal 2026 shows strong revenue growth driven by AI, with a revenue of $68.3 billion, surpassing market expectations and indicating robust cash flow and investment potential.
Market Segments Growth: The company experienced significant growth across critical markets, particularly in data centers, automotive, and gaming, with data center revenue accounting for over 90% of total revenue and growing by 75% year-over-year.
Future Projections: Analysts project continued strong performance for NVIDIA, forecasting $78 billion in revenue for Q1 FY 2027, reflecting a 14.7% sequential increase and a 77% year-over-year growth, excluding China.
Investor Sentiment and Stock Outlook: Analysts maintain a bullish outlook on NVIDIA's stock, with a consensus target price suggesting significant upside potential, supported by strong cash flow and a healthy balance sheet, positioning the company well for future growth.
See More
Nvidia's Q4 Results Exceed Expectations Significantly
- Strong Performance: Nvidia reported an adjusted earnings per share of $1.62 for the quarter ending January 25, with revenue soaring 73% year-over-year to $68.13 billion, significantly exceeding Wall Street's forecast of $65.91 billion, indicating robust market demand and execution.
- Data Center Revenue Surge: Data center revenue reached $62.13 billion, surpassing expectations of $60.36 billion, reflecting a surge in enterprise demand for AI computing, further solidifying Nvidia's leadership in the AI sector.
- Optimistic Outlook: The company anticipates revenue of $78 billion for the upcoming fiscal first quarter, excluding any revenue from China, showcasing confidence in global markets while also indicating a cautious stance towards the Chinese market.
- Dividend Announcement: Nvidia declared a quarterly dividend of $0.01 per share to be paid on April 1, enhancing investor confidence and demonstrating the company's ability to return value to shareholders supported by strong cash flow.
See More
Analysts Claim Nvidia is Massively Undervalued
- Market Underestimation: Dan Ives from Wedbush Securities pointed out that Wall Street analysts have severely underestimated Nvidia's valuation, particularly ahead of the upcoming fourth-quarter earnings report, indicating a neglect of the company's potential.
- Surge in AI Demand: Ives emphasized that with the skyrocketing demand for artificial intelligence, Nvidia's chips play a crucial role in driving the AI revolution, making its future earnings pivotal.
- Performance Expectations: Ives anticipates a 'gold medal performance' from Nvidia, reflecting not only his confidence in the company's strong earnings but also potentially influencing investor perceptions of its stock.
- Stock Price Reaction: At the time of writing, Nvidia's shares were trading 2% higher, indicating a positive market response to the optimistic expectations surrounding the upcoming earnings report and analyst sentiments.
See More
Salesforce Reports Strong Q4, Announces $50 Billion Buyback
- Strong Earnings: Salesforce reported a revenue of $41.5 billion for fiscal Q4, marking a 10% year-over-year increase that surpassed analyst expectations, indicating the company's sustained growth potential in the software market.
- Robust Cash Flow: The company achieved a 15% increase in operating cash flow to $15 billion and a 16% rise in free cash flow to $14.4 billion for fiscal 2026, reflecting its financial health under a $190 billion market capitalization.
- Buyback Program: Salesforce announced a $50 billion share repurchase authorization, having returned $12.7 billion in stock buybacks and $1.6 billion in dividends in fiscal 2026, which enhances investor confidence and could support a rebound in stock price.
- Cautious Outlook: Despite a 14% year-over-year growth in remaining performance obligations to $72.4 billion, management's revenue guidance for fiscal 2027 is only $45.8 to $46.2 billion, indicating a cautious stance on future growth that may affect market perceptions of its valuation.
See More
Indian Markets Set for Flat Start Amid IT Stock Concerns
- Market Opening Expectations: Indian markets are set for a flat start on Friday, with Nifty futures trading at 25,547.5 points, close to Thursday's close of 25,496.55 points, reflecting restrained sentiment due to a U.S. tech sell-off and subdued Asian cues.
- IT Stock Pressure: Indian IT stocks have lost about 20% in February amid fears of AI-related disruptions, increasing market focus on these beleaguered stocks, especially against the backdrop of a broader decline in global tech stocks.
- Foreign Investment Trends: On Thursday, foreign portfolio investors offloaded domestic equities worth 34.66 billion rupees (approximately $380.96 million), while domestic institutional investors purchased shares worth 50.32 billion rupees, indicating a shift in market liquidity dynamics.
- Oil Price Retreat Impact: Oil prices retreated from nearly seven-month highs following indirect talks between the U.S. and Iran over nuclear issues to avert conflict, easing supply disruption concerns that could influence overall market sentiment.
See More
US Stocks Show Mixed Signals with Software Stocks Supporting Market
- Strong Software Performance: Snowflake's stock rose 2.3% after Citi raised its price target from $270 to $280, indicating growing momentum in the AI sector, which bolstered investor confidence in the software industry.
- Divergent Market Sentiment: While the Dow Jones increased by 0.03%, the S&P 500 fell by 0.5% and the Nasdaq Composite declined by 1.2%, reflecting concerns over semiconductor stocks, particularly Nvidia's 5.5% drop that dampened overall sentiment.
- Geopolitical Impact: Investors are closely monitoring the progress of U.S.-Iran nuclear negotiations, with Iran stating that talks have been “very intense and serious,” which could influence market sentiment and investment decisions ahead of key economic data releases.
- Economic Data Expectations: The market is awaiting the release of crucial U.S. economic data, including the Producer Price Index (PPI) and Chicago Purchasing Managers Index (PMI), which are expected to significantly impact future market trends.
See More
