The Nasdaq Composite (^IXIC) moved up more than 1.4% as shares of Nvidia (NVDA) and Amazon (AMZN) rose to new highs Thursday morning. Chip leader Nvidia broke out at a proper buy point of 140.76 on Wednesday and rose to an all-time high of $148.73 on Thursday. The climb marked a whopping 11.45% climb since Sunday for the stock.
Amazon, on the other hand, is also on the rise over this past week, climbing 12.6% in the last five days. AMZN stock established a new high just shy of $212 per share Thursday morning. The stock has an impressive record of positive earnings surprises of late. In its Q3 earnings report on October 31, Amazon reported EPS of $1.43 versus the consensus estimate of $1.14, while it beat the consensus revenue estimate by 1.15%.
According to experts, the Fed’s interest rate decision later Thursday could be the next catalyst that moves the Nasdaq. While another 25 bps cut is expected, it is Fed Chair Jerome Powell’s insight on future Fed moves that investors will be paying attention to. With Donald Trump’s recent US election win, some predict that interest rate cuts may become shallower next year.
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Nvidia and Amazon To Continue Huge Runs
Nvidia is expected to continue its recent monstrous growth when its Q3 earnings report is published in two weeks, on November 20. A recent FactSet poll reveals expectations that sales will increase 122% to $30 billion and earnings of 68 cents per share. This would be a whopping 152% higher than the prior year.
Besides Nvidia, Amazon is also in great form, boosting the tech-heavy Nasdaq. Its recent trip into the AI industry with its Generative AI Partner Alliance was a factor in its stock climbing this week. The company is in a rare position to benefit because of its position in various sectors that have seen tremendous growth. Not only has it been a fixture in the e-commerce space, but it has seen its AI and cloud-based computing businesses skyrocket. That growth has caused most investment firms to raise their price predictions for AMZN in the near future.