Fast Money Blog- 5/26/23

On Tuesday, May 23rd, Lowe’s Companies, Inc. (LOW) released their Q1 2023 earning results. Lowe’s top-line revenue in the third quarter was $22.3 billion, down 6% year-over-year. 

In the first quarter, the company also said that comparable sales dropped 4.3%.

However, online sales for the quarter grew 6% year-over-year.  

Lowe’s, like Home Depot, is seeing a drop-off in home improvement enthusiasm, which, along with falling lumber prices and unfavorable spring weather, has lowered their sales numbers.

Still, again like Home Depot, Lowe's stock is a great long-term investment.

Nvidia News Leads to Stock Market Surge

I’m sure you are aware of the forward looking earnings statement by Nvidia founder and CEO, Jensen Huang. Nvidia Corporation (NVDA) released a Q1 2023 earnings report that stunned Wall Street.

Here’s what you need to know:

While Nvidia’s quarterly revenue ($7.2 billion) dropped 13% year-over-year, it was its surging demand for the processors that power artificial intelligence (AI) applications, that had the stock market abuzz. 

Nvidia’s data center revenue (which includes AI chips), climbed 14% year over year, while increasing 18% since last quarter.

Because of the fundamental shift from traditional computing to accelerated computing, Nvidia's chips that power generative AI are in high demand. This is so much so, that the company expects their Q2 2023 revenue to swell to $11 billion, up 33% year-over-year. 

Wall Street was clearly impressed, as Nvidia stock rose $85 based on the outlook of this future revenue. This is an unusual response, because its rare to see an extreme jump in share price based on future projected revenue and not the actual quarterly revenue.

I'll have more to say on this subject in the future. 

Tyrone Jackson, The Wealthy Investor