مع ترقب نتائج الأعمال.. هل تنجح Nvidia في إرضاء طموحات المستثمرين؟
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00:00 Goldman Sachs is the most important company in the world. It is the company of NVIDIA.
00:07 This name is not only because of the company's importance for artificial intelligence and its applications,
00:14 but also because of its great ability to transform wills into profits.
00:20 The expected results of the fourth quarter are estimated.
00:23 If NVIDIA really planned it, it is not only planning the investors' expectations,
00:28 but it is actually surpassing itself.
00:31 Today, the details of these financial figures will be announced.
00:35 We expect that we will have a rise in wills of 240%, but it is not the most important figure.
00:42 The most important figure is the expected net profit,
00:45 which the investor expects to be the fourth quarter's profit, which has increased sevenfold compared to the fourth quarter of 2022.
00:54 This is what makes NVIDIA special, the ability to transform dollars from wills into net profits.
01:03 If we look at the net profits and compare them between 2022 and 2023, we will be able to notice this great ability.
01:13 The gross margins grew from 53% in 2022 to more than 70% in 2023.
01:25 No company today is able to grow its profits with this fast margin.
01:31 These results will be very important, not only for NVIDIA and its share,
01:37 but also for other companies that are importing chips for NVIDIA.
01:43 We have seen some reservations on NVIDIA's shares before the announcement of these results,
01:49 but this is justified if we look at the fact that a third of this year's Nasdaq 100 rises are due to NVIDIA.
01:57 Therefore, it is normal to see some fluctuations before the announcement of the results.
02:01 These fluctuations have spread to NVIDIA's suppliers, such as Taiwan's TSMC and ASML.
02:08 Therefore, these results are very important, not only for NVIDIA, but also for these companies
02:14 and for the smaller companies that work in the field of artificial intelligence.
02:19 As for the Magnificent 7 and this great rally that we have seen on the shares of the technology sector,
02:26 today the most important question will be, if NVIDIA plans the analysts' expectations in its results,
02:32 will it be enough to continue the rally for the Magnificent 7 and the S&P 500 index?
02:39 This is the most important question, especially since the share rose three times in 2023.
02:47 We have very positive expectations even for the first quarter of this year.
02:51 Among the results we are watching is the second quarter of 2024,
02:57 which the company has promised to manufacture and deliver electronic chips designed specifically for the Chinese market,
03:06 in order to comply with the US rules and regulations that prevented NVIDIA from exporting its current chips to China.
03:16 These are the share prices over the past 12 months.
03:21 If we look at the profit margins, yes, they are very high.
03:24 Trailing PE is about 66 times, meaning that the investor pays 66 dollars in exchange for each dollar of the company's profits.
03:32 But if we look further than that, if we look at the future expectations and the forward PE,
03:38 it is about 40 times.
03:41 It is still very high, but it is a price not only for the profits of the year, but for the profits of a number of years to come.
03:48 The biggest risk for NVIDIA's results this year is the demand for GPUs, the graphic processing units.
03:58 The reason for this is that the GPUs that NVIDIA manufactures go to companies like Microsoft, Alphabet, Meta, and others.
04:07 If these companies decide to reduce their investment and spend on artificial intelligence, NVIDIA will be harmed.
04:14 The other thing is that they are in violation of US laws regarding the chips that are exported from US companies to China.