Nvidia’s A100 GPU, used to train ChatGPT and other generative AI, is shown on February 9, 2023 at the Nvidia headquarters demo center in Santa Clara, California.
Check out the companies making headlines in midday trading.
Nvidia — The chipmaker’s stock climbed more than 1% to a record high after the company reported a decline in sales and earnings. The strong performance was driven by the data center business, which includes the A100 and H100 AI chips needed to build and run artificial intelligence applications. Nvidia also issued strong guidance amid rising chip demand, suggesting that its revenue for the current quarter will rise 170% from the same period last year.
AMD, Marvell Technology – Both semiconductor stocks fell as Nvidia’s earnings momentum slowed. AMD shares are down nearly 5%, while Marvell is down 4%.
Boeing — Shares of the aerospace company fell nearly 3% after Boeing said deliveries of the 737 Max would be delayed after new manufacturing defects were discovered. The company said the mounting holes on the rear pressure bulkhead of some aircraft were improperly drilled. Spirit AeroSystems, which builds the fuselages, lost 16.5%.
Dollar Tree – The discount retailer fell 2% after issuing lower-than-expected guidance for the third quarter. The company said it expects between 94 cents and $1.04 per share, while analysts polled by Refinitiv were expecting $1.27 going forward.
Discover Financial Services – Shares rose 2% after an upgrade to “Outperform” from Wolfe, who said the company’s “recent underperformance, attributed to internal control and risk management flaws,” could present a buying opportunity for investors.
Splunk – Cloud stock rose 13.6% after the company beat Wall Street expectations for second-quarter earnings and raised its guidance. Bank of America reiterated its buy and top pick ratings on the stock following the report.
Autodesk — Shares gained 3.1% after Autodesk reported an increase in earnings and a higher guidance for the future. Autodesk returned an adjusted $1.91 per share and revenue of $1.35 billion, compared to Refinitiv analysts’ estimates of $1.73 per share and revenue of $1.32 billion went out.
Snowflake – Snowflake was down more than 5% in midday trade even after the stock reported a decline in earnings. The company reported adjusted 22 cents a share on revenue of $674 million, while analysts polled by Refinitiv forecast 10 cents and $662 million.
Guess – The apparel company surged more than 28% after reporting an increase in earnings underscored by an adjusted 72 cents a share and revenue of $664.5 million.
— CNBC’s Alex Harring, Yun Li and Michelle Fox contributed coverage.
Correction: Dollar Tree issued a weaker-than-expected guidance for the third quarter. In an earlier version, the name was given incorrectly.
Source : www.cnbc.com