As Nvidia Tumbles Post Q2 Earnings, Tech Bull Draws Parallels To Market's Reaction To Apple Stock After WWDC 2024: 'We Always Focus On Demand, Guidance, And Growth'

Wedbush analyst Dan Ives has drawn comparisons between Apple Inc.’s AAPL stock following WWDC 2024, with Nvidia Corp.’s NVDA robust second-quarter performance.

What Happened: On Wednesday, after Nvidia reported its earnings and the company’s shares tumbled, Ives took to X, formerly Twitter, and shared his observation.

He noted a shift in sentiment towards Apple from initial negativity post-WWDC 2024 to a more positive outlook. He said that Apple stock, which was around $190 post-event, has now risen to $226.

See Also: Steve Jobs Once Said He Was A Millionaire At 23, Worth $10M By 24, And Had $100M by 25 — This Shaped His Decision To Stay On A $1 Salary Throughout His Time At Apple

“We always focus on demand, guidance, and growth,” said Ives, underscoring the key metrics for evaluating a company’s performance.

Ives then drew parallels with Nvidia, which had a strong quarter, meeting or exceeding expectations on these metrics.

Despite Nvidia’s stock price declining slightly, Ives suggested that this isn’t concerning. “Nvidia checked all 3 boxes tonite [sic] with a massive quarter and we are not focused on stock off a bit,” he stated.

Apple at WWDC initial reaction in June was negative and bears were all out at $190…Apple $226 today..we always focus on demand, guidance, and growth…Nvidia checked all 3 boxes tonite with a massive quarter and we are not focused on stock off a bit…@CNBCClosingBell 🔥🏆🐂🍿 https://t.co/sFCSTrmp5q

— Dan Ives (@DivesTech) August 29, 2024

Why It Matters: Nvidia’s second-quarter earnings and revenue exceeded expectations, driven by strong data center revenue. However, the gross margin contracted from the first quarter. Despite the positive results, the shares slumped.

During the second-quarter report, Nvidia announced modifications to the Blackwell GPU mask to boost production yields.

The production ramp for Blackwell is scheduled to kick off in the fourth quarter and extend into fiscal year 2026, as confirmed by Nvidia's CFO Colette M. Kress.

This announcement has generated “incredible” customer anticipation, according to the company executives.

Price Action: Nvidia shares were down 1.6% in premarket trading at the time of writing on Thursday, after falling 2.1% on Wednesday to close at $125.61, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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