S&P 500 Retail Analysis, Commentary and Insights for Wednesday: May 22, 2024

Hey Trader,

Find Confidence and Purpose in Your Trading Journey

I hope this message finds you well. As retail traders, we often face challenging moments filled with uncertainty and self-doubt.

In these times, it’s important to find inspiration and reassurance from powerful sources.

Today, I’d like to share a verse from the Bible that has always uplifted me, and I believe it can do the same for you:

"And a voice from heaven said, 'This is my Son, whom I love; with him I am well pleased.'" - Matthew 3:17

This verse is a profound reminder of unconditional love and approval.

Just as Jesus was affirmed by this heavenly voice, we too can find confidence and purpose in our endeavors.

Imagine trading with the assurance that your efforts and dedication are recognized.

Even when the markets are volatile, and the path seems unclear, know that you are valued and your journey is significant.

Embrace each trade, each decision, with the understanding that you have a unique purpose and potential.

Let this verse inspire you to trust in your skills and strategies.

Remember that, just like Jesus, you have the capacity to achieve great things.

Be patient, stay disciplined, and continue learning. Your perseverance and passion will lead you to success. Wishing you a profitable and fulfilling trading day!

Be Relentless In Pursuit Of The Will 

Which God Has Set Upon Your Heart,

Anthony Speciale

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Nvidia: Talk of the Town at AI Events Leading into This Week’s Earnings

• Nvidia is at the center of attention at major AI events hosted by OpenAI, Google, and Microsoft ahead of its quarterly earnings report.

• Analysts expect Nvidia’s year-over-year revenue growth to surpass 200% for the third consecutive quarter.

• Nvidia shares have surged over 90% this year, after more than tripling in 2023.

Nvidia’s Dominance in AI

Nvidia is currently the star player in the AI technology world. The company is in the spotlight at major AI events hosted by industry giants like OpenAI, Google, and Microsoft. With Nvidia's quarterly earnings report due on Wednesday, the chipmaker's prominence in the AI sector is clear.

OpenAI’s technology chief recently thanked Nvidia CEO Jensen Huang for providing the advanced chips necessary for their latest AI models. Similarly, at Google’s annual developer conference, CEO Sundar Pichai emphasized Google’s long-standing partnership with Nvidia, highlighting the use of Nvidia’s Blackwell GPUs in Google Cloud from early 2025. Microsoft, too, is leveraging Nvidia’s GPUs to develop new AI advancements and features, showcasing these innovations at its Build conference in Redmond, Washington.

Explosive Revenue Growth

Nvidia is expected to report a staggering 243% increase in year-over-year revenue for its fiscal first quarter, reaching $24.6 billion, according to LSEG. The bulk of this revenue, over $21 billion, is projected to come from Nvidia’s data center business, which supplies advanced processors to tech giants like Google, Microsoft, Meta, Amazon, and OpenAI.

This impressive growth is not just in revenue but also in profitability. Nvidia's net income is expected to surge more than fivefold from a year earlier to $13.9 billion. The stock has already soared 91% this year, continuing its incredible rise from 2023, where it more than tripled in value.

Nvidia’s Role in the AI Boom

Dan Niles, founder of Niles Investment Management, likens Nvidia’s current position in the AI boom to Cisco’s role during the internet buildout of the 1990s. Niles predicts that Nvidia will experience similar cycles of dramatic pullbacks and subsequent surges, with the potential for its revenue to increase three to four times over the next few years.

Google, Amazon, Microsoft, Meta, and Apple are expected to collectively invest around $200 billion in capital expenditures this year, with a significant portion directed towards AI-specific infrastructure, including Nvidia chips. OpenAI relies on Nvidia’s technology for its latest chatbot, GPT-4o, and Meta has announced plans to incorporate 350,000 Nvidia GPUs into its systems, costing billions of dollars.

Future Prospects and Challenges

Nvidia’s future looks bright, but it’s not without challenges. Growth rates are expected to slow starting in the second quarter, with analysts anticipating significant deceleration over the next three periods. Additionally, the transition to Nvidia’s next generation of AI chips, called Blackwell, could create a lull as clients may delay purchasing older GPUs like the H100 in favor of the new Blackwell-based chips.

Despite these potential hurdles, Nvidia is expected to retain a dominant position in the AI accelerator market, with Piper Sandler analysts predicting it will hold at least 75% of the market share, even as competitors like Google develop their own custom chips.

Nvidia’s remarkable rise in the AI industry is a testament to its innovative technology and strategic partnerships with major tech companies. As the company prepares to release its quarterly earnings report, all eyes are on Nvidia to see if it can continue its streak of explosive growth and maintain its leadership in the AI chip market.

For retail traders, Nvidia’s story highlights the potential of investing in cutting-edge technology companies at the forefront of major industry trends. By understanding Nvidia’s pivotal role in the AI boom, traders can make informed decisions and potentially capitalize on the ongoing advancements in artificial intelligence.

Stay Informed, Stay Ahead: Join the Speciale Analysis Family of Traders

S&P 500 Retail Analysis for Wednesday: May 22, 2024

Let's break down some important numbers for you to keep an eye . . .

If we see the market knocking on 5327.00, there's a good chance of support being found and price could then push higher towards 5444.00 on the horizon. Potentially continuing to rally from there if continued buying pressure amounts.

But if the market goes down and falling through 5327.00, it could mean that the selling pressure might be ramping up, and we might start seeing things keep dropping. Perhaps even towards 5230.00 on the horizon, and maybe even beyond that in time.

CLICK HERE For Professional Analysis Reports - Including: Intraday Trading Levels, Short & Long Term Expectations, Full Write-Ups and Chart Images ... Delivered Daily

So, keep an eye on these numbers, and let's see where the market takes us!

Happy Trading,

Speciale Analysis