Investors have been watching the meteoric rise of Nvidia Corp. with amazement, though some with trepidation over concerns the AI darling could give back some of that meteoric rise after blowout earnings reported earlier this week. But a new study from Citigroup finds that even when large capitalization stocks rally into earnings, they tend to keep on rising, meaning bulls of Nvidia
NVDA,
+16.40%
and the fast-growing technology can probably stick to their guns.
“The AI bubble is not in trouble, and, if anything, earnings performance suggests that it is less of a bubble to begin with,” said a team of quantitative strategists led by Alex Saunders. Crucial for Nvidia investors, they found that if a stock performance is up more than 10% on earnings day, “those large-caps with strong performance into earnings continue to perform very well for the next three months.” Nvidia stock soared 16% on Thursday, adding $277 billion in market cap, the largest such one-day gain for any company ever. Shares did suffer a four-day selloff in the run-up to those results, but have largely been unstoppable since a technology sector pullback in October. Read: Nvidia’s stock price isn’t the only thing that sets it apart from the rest of the Magnificent Seven The Citi strategists studied 30 years of data on S&P 500 index constituents, looking at 1,120 tickers for rallies of 35% or more, three months ahead of respective ear …
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NVDA,
+16.40%
and the fast-growing technology can probably stick to their guns.
“The AI bubble is not in trouble, and, if anything, earnings performance suggests that it is less of a bubble to begin with,” said a team of quantitative strategists led by Alex Saunders. Crucial for Nvidia investors, they found that if a stock performance is up more than 10% on earnings day, “those large-caps with strong performance into earnings continue to perform very well for the next three months.” Nvidia stock soared 16% on Thursday, adding $277 billion in market cap, the largest such one-day gain for any company ever. Shares did suffer a four-day selloff in the run-up to those results, but have largely been unstoppable since a technology sector pullback in October. Read: Nvidia’s stock price isn’t the only thing that sets it apart from the rest of the Magnificent Seven The Citi strategists studied 30 years of data on S&P 500 index constituents, looking at 1,120 tickers for rallies of 35% or more, three months ahead of respective ear …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]