Nvidia rallies as Wall Road anticipates pivotal report

Nvidia rallies as Wall Road anticipates pivotal report
The logo of technology company Nvidia is seen at its headquarters in Santa Clara

The emblem of technological innovation organization Nvidia is viewed at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo Receive Licensing Legal rights

Aug 23 (Reuters) – Nvidia shares (NVDA.O) rallied almost 3% on Wednesday as traders wager the chip designer will deliver a robust outlook soon after the bell and raise the U.S. inventory current market as it reaps the rewards of early investments in synthetic intelligence.

Nvidia’s shares have extra than tripled this yr, with the chipmaker at the heart of a Wall Street technological know-how rally fueled by optimism about the probable of AI.

Its inventory market benefit of $1.16 trillion helps make Nvidia the world’s most beneficial chipmaker by much, much more than double the benefit of TSMC (2330.TW), the world’s 2nd most valuable chip enterprise. Nvidia’s shares briefly hit a document substantial in the preceding session.

“It is really not often that the fate of the sector rests in the palms of just one inventory, but it incredibly substantially feels like that is what is actually likely on at the minute,” mentioned JJ Kinahan, chief government officer of IG North America.

Retail investors built web buys of $186 million in Nvidia shares above the previous week, JPMorgan reported in a report on Wednesday.

Nvidia dominates the market place for superior-stop processors created for AI computing, and its stellar outlook in the previous quarter sent its shares soaring over 20% and ignited a rally in the S&P 500 know-how sector (.SPLRCT), which surged 8% in the 5 periods just after its final results.

Reuters Graphics

Selections data showed the inventory could swing nearly 11% by Friday, bigger than the 8.6% average move in both way seen a working day just after Nvidia’s success over the last 8 quarters.

Nvidia is section of the so-identified as Magnificent 7 group of megacap shares such as Apple (AAPL.O) and Tesla (TSLA.O) that have driven the S&P 500’s (.SPX) just about 16% restoration this year.

Bullish buyers are betting a potent report and forecast from the enterprise will revive a U.S. stocks rally that has paused in the latest months. Just about anything shorter of a stellar forecast could also guide to a market-off in Nvidia and other AI-related shares, investors also warned.

“The market place is investing – and Nvidia is buying and selling – as if the amount is likely to be extremely great. There is certainly been fear that if their quantity was not superior, it could consider the marketplace down,” claimed Rick Meckler, a spouse at Cherry Lane Investments.

Following analysts amplified their earnings estimates pursuing Nvidia’s former report on May 24, the stock is trading at a forward earnings multiple of about 43, under a many of about 60 before its quarterly report in May perhaps, according to Refinitiv knowledge.

Wall Road expects the chip designer to tutorial for fiscal 3rd-quarter income over the consensus analyst estimate of $12.61 billion, which would be a soar of about 110%, according to

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EV Battery Technology: The Road To A Breakthrough

EV Battery Technology: The Road To A Breakthrough

Battery technology is the new bull’s-eye for companies striving to meet the world’s growing appetite for electric vehicles.


What are the major EV battery technologies right now, and what innovations loom on the horizon?

Lithium-ion and lithium-iron phosphate (or LFP) dominate the current EV battery landscape. They have pros and cons in terms of range, raw material prices and more. Tesla (TSLA) uses both lithium-ion and LFP batteries. Emerging archrival BYD (BYDDF) uses a specialized LFP battery.

Battery companies and automakers are investing heavily to build cheaper, denser and lighter batteries. New technologies run the gamut. Some give old battery chemistries a new twist for incremental improvements. Others change the battery form factor or battery assembly for significant gains in performance or costs. In the future, radically different chemistries and other big breakthroughs are expected to emerge.

For its next-gen Ultium batteries, General Motors (GM) tweaked the lithium-ion chemistry to cut costs sharply. Tesla’s new 4680 battery cell claims cost savings and other benefits via a larger size and state-of-the-art engineering. China’s CATL, the world’s largest battery maker, touts even bigger improvements for its new Kirin battery, in part due to how cells are combined into packs.

The most far-reaching battery innovations could come from a variety of players. CATL is working on sodium-ion batteries, while QuantumScape (QS), SES (SES), SolidPower (SLDP) and Toyota Motor (TM) are developing solid-state batteries. Both battery types are potential game changers but face technical hurdles.

“Batteries are the new gold rush as far as automakers are concerned,” said Ram Chandrasekaran, a mobility analyst at Wood Mackenzie who formerly worked for Ford.

Better, more powerful batteries will drive the adoption of electric cars. Entire car platforms are being built around the battery, which not only supplies power but also serves as a critical structural element in EVs today, Chandrasekaran says.

Battery Technology Race

To be sure, the battery technology race isn’t just about electric cars. Batteries power everything from smartphones and laptops to power drills. The utility sector itself is a growing source of battery demand.

But there’s a reason why car companies shot to the lead in this race: EVs make up 80% of lithium-ion battery demand, according to Wood Mackenzie, an energy research and consultancy firm.

Already in 2021, lithium-ion battery supply fell short of demand in a brisk EV market, WoodMac says. The prices of battery raw materials also jumped. That has only intensified in 2022.

Asia, led by China, commanded 90% of the world’s battery manufacturing in 2021. By the end of this decade, Wood Mackenzie expects that share to fall below 70% as the West catches up.

Across the U.S. and Europe, dozens of battery plants will spring up by decade’s end amid fears of lithium shortages. Companies seek both to reduce geopolitical risk and to reduce transportation costs, since heavy EV batteries are costly to ship.

On May 2, the U.S. Department of

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