Good Evening! On Wednesday, there was a notable increase in stock prices as investors prepared themselves for the release of financial data from Nvidia (NVDA).
The Nasdaq Composite led the way by ending the day up by 1.59% with the S&P 500 following behind by increasing by 1.10%. The Dow Jones did not rise as much but still ended up by 0.54%.
SURPASSING EXPECTATIONS
Nvidia (NVDA) released its Q2 earnings results, which surpassed already high expectations for the company. This performance was due to the continued momentum of the AI industry.
- Revenue: $13.51 Billion vs. $11.04 Billion Expected
- Data Center Revenue: $10.3 Billion vs. $8.0 Billion Expected
- Gaming Revenue: $2.5 Billion vs. $2.4 Billion Expected
- Earnings Per Share: $2.70 vs. $2.07 Expected
It doesn’t stop there! Nvidia has also provided revenue guidance for the current quarter, totaling $16 Billion with plus or minus 2% error. This number also is significantly higher than Wall Street’s projection of $12.5 Billion for revenue.
How are the other companies doing? Other chip manufacturers, including AMD & Intel, are making efforts to narrow the gap with Nvidia in the development of AI Processors. However… Nvidia has persistently enhanced its product offerings and introduced accompanying software and services, with the objective of maintaining its competitive advantage.
PUMKIN SPICE LATTE IS BACK
The return of Starbucks’ Pumpkin Spice Latte, serves as an indication of the unofficial beginning of the fall season. And this year is special because it marks the 20th year after its first introduction to the market. The beverage has undergone a significant transformation, emerging as a cultural phenomenon that has influenced the creation of additional seasonal options not just at Starbucks, but also at other establishments.
Why is it important? In the year 2019, there was a significant rise of 14% in traffic over the seven-day period following the launch, as compared to the average weekly visits seen five weeks before. In the year 2022, Starbucks reintroduced its autumn menu on August 30th, resulting in a significant surge in customer visits, almost doubling the foot traffic and exhibiting a notable 25.7% rise in shop visits.
It is not only Starbucks… According to reports, Wendy’s (WEN) is preparing to introduce a new product, specifically a pumpkin spice frosty. In addition, many other prominent companies including 7-Eleven, Krispy Kreme (DNUT), Goldfish (CPB), Hostess (TWNK), Nestlé Toll House (NSRGY), and General Mills’s Cheerios (GIS) have introduced their own range of pumpkin spice items.