Nvidia Corp (NASDAQ:NVDA) and peer Advanced Micro Devices, Inc (NASDAQ:AMD) shine buoyed by their artificial intelligence moat as Qualcomm Inc’s (NASDAQ:QCOM) takes the broader indexes down with underwhelming third-quarter results and guidance.
Qualcomm reported third-quarter revenue of $8.44 billion, down 23% year-over-year, missing the Street estimate of $8.51 billion.
The company reported EPS of $1.87, which beat a Street estimate of $1.81.
Qualcomm sees fourth-quarter revenue of $8.1 billion – $8.9 billion vs. consensus $8.7 billion. The company sees EPS hitting $1.80 – $2 vs. consensus $1.91.
The U.S. stock market is already under pressure from Fitch’s downgrade of the U.S. credit rating, citing fiscal deterioration and repeated down-the-wire debt ceiling negotiations. Fitch became the second central rating agency after Standard & Poor’s to strip the U.S. of its triple-A rating.
Interestingly, Bank Of America Corp (NYSE:BAC) CEO Brian Moynihan snubbed the recession forecasts citing strength in the jobs market and robust consumer spending.
“People are employed, they have money, they are spending money,” Moynihan said in a Bloomberg Television interview Thursday.
AMD has already started focusing on countries like India to diversify its supply chain base with a keen eye for China akin to Nvidia.
Broader index ETFs, including SPDR S&P 500 (NYSE:SPY) and Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), are trading lower by less than 1% Thursday.
Nvidia stock has gained 212% YTD.
Price Actions: NVDA shares traded higher by 1.46% at $449.19 on the last check Thursday.
