Good Evening! On Tuesday, the performance of stocks differed. This was due to the optimism of investors who anticipate the successful passage of the debt-ceiling agreement through a Congress that is currently divided.
The S&P 500 finished the day flat at 0.00%, while Dow Jones finished the day in the red by 0.15%. However, the Nasdaq Composite finished the day up by 0.32%.
STANDING THEIR GROUND!
HP Inc. (HPQ), a prominent player in the computing industry, was able to overcome a significant decline in PC sales and report quarterly earnings that exceeded expectations. Let’s see those numbers:
- Revenue: $12.9 Billion vs. $13.03 Billion Expected
- Personal systems sales: $8.2 Billion vs. $8.46 Billion Expected
- Printing sales: $4.7 Billion vs. $4.6 Billion Expected
- Earnings Per Share: $0.80 vs. $0.76
The highlights! The company saw a decline in unit sales within its PC and printing divisions, as both commercial and individual customers persisted in closely monitoring their financial status in the aftermath of the pandemic. However, due to the diverse cost-reduction initiatives implemented by HP within the last year, profit margins for both sectors remained unaffected.
It wouldn’t be a proper earning report without some AI discussion! During an interview, HP’s CEO Enrique Lores emphasized the potential of AI as a significant opportunity for reviving the capabilities of PCs. He suggested that AI could redefine the features of PCs, allowing users to perform complex spreadsheet analysis through cloud-based services while maintaining high levels of security.
ANOTHER COMPANY JOINS THE CLUB!
Nvidia (NVDA) achieved a market valuation of $1 trillion, making it the first chipmaker ever to reach this milestone. However, it subsequently experienced a decline and fell below the previously established threshold. The company’s market capitalization reached $992 billion as the stock concluded trading at $401.11.
But why does it matter? With Nvidia hitting this milestone, it makes it the ninth publicly traded company to ever reach this. Some of the other companies that have joined this exclusive club are Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL).
So how did Nvidia achieve this? The shares of Nvidia have experienced a remarkable surge this year, exhibiting an increase of over 165% since the beginning of 2023. The manufacturer of microprocessors is currently situated at the focal point of a surge in interest in artificial intelligence, primarily due to its exceptionally potent graphics processing units and server merchandise. On top of that, The shares experienced a significant surge of over 26% on Thursday due to Nvidia’s quarterly results and guidance exceeding market expectations.