NVDA Earnings 2022: A Turning Point for Tech Stocks?

In recent weeks, tech giants like NVIDIA (NVDA) and Advanced Micro Devices (AMD) have been making headlines with their earnings reports. While some might be disappointed by the numbers, others see it as an opportunity to make a comeback in the market.

As I mentioned earlier, I predicted that NVDA could potentially reach $75, considering its fair value at $120. However, after a dismal report from NVDA, it rallied to $180, which I deemed a joke. Nevertheless, with recent developments, I've added both AMD and NVDA back into my portfolio.

The implications of these earnings reports are far-reaching, particularly for the Nasdaq index. As we know, NVDA, AMD, and other tech companies like Micron Technology (MU) play significant roles in driving the Nasdaq's performance. The fact that these companies have reported negative sales guidance, with AMD's forecast dropping 15%, sends a strong signal to investors.

One of the key differences between the Nasdaq and traditional indices like the S&P 500 and Dow Jones is the ease of trading. The Nasdaq has made it more accessible for publicly traded companies, whereas listing on the NYSE was once the only option. This accessibility has contributed to the Nasdaq's reputation as a hub for tech and growth stocks.

Moreover, NVDA's recent addition to the NYSE is a testament to its growth and success. However, this development doesn't alter the fact that the Nasdaq remains a bellwether for the tech sector.

As we move forward, it will be interesting to see how investors react to these earnings reports. Will they take a cue from AMD's dismal forecast and adjust their portfolios accordingly? Only time will tell. Nevertheless, one thing is certain: the tech sector continues to play a vital role in shaping the market's trajectory.

Nvda earnings 2022