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We're back on Morning Trade Live. Let's focus on semiconductors. Now, here's where the major players in that space are trading this morning after Nvidia reported earnings after the close on Wednesday. And is there There is one direction they are heading in and some pretty heavy selling pressure, you could say, here.
Intel down 4.7, Broadcom down almost seven, AMD down four, and Nvidia continues to lose altitude throughout the course of the morning session here. An hour into trade, we are down almost 5% on that name at 186 18 on the chip darling off the back of its report. So, that's the focus of the morning trade.
For a closer look now, Is Mally Kagan. Very good morning to you, Mally. Obviously, we've seen the street's reaction here coming from investors. We've run through the technical reaction and what we're seeing here with KG and Nate Peterson, but just talk us through what the sell side is saying about that.
Sure, Sam, and good morning to you. Yes, the the sell side still seeing a positive growth here. Really impressed with the numbers we got. Really impressed with the guidance that we got. Despite this move to the downside that we're seeing. Just a quick reminder on some of the numbers here. Earnings per share at $1.62 better than the $1.53 expected.
Revenue of 68.13 billion better than the 66.21 that was expected. Total revenue was up 73% year-over-year. The company gets 91% of its sales now from its data center unit. And revenue in the data center business climbed 75% from the year earlier to 62.3 billion. Guidance better than expected. Their revenue of the fiscal first quarter will be 78 billion plus or minus 2%.
Analysts were looking for 72.6 billion dollars. And China is not is not included in that forecast. So, only potential upside from there. But as far as the response, you're going to hear me cite some of those things in these notes. Nvidia Wedbush has raised their price target to $300 up from 230. Right now, we're trading at about $185.
Uh Wedbush keeping its outperform rating saying that they say while they see the Q4 acceleration in data center sales was impressive given the law of large numbers, it would call out Q1 sales guidance in particular as being the highlight of the call given that Wedbush believes that this outlook was well in excess of prior buy-side expectations.
At Rosenblatt, they've also got a new $300 price target keeping that buy rating. Uh they said that the firm sees Nvidia, quote, overcame many concerns including GPU capacity, tensor processing unit capacity, memory supply, and customer financing. Rosenblatt saying that they see the company continuing to lead in AI market development.
300 really the number today, Sam, to another one from Bernstein up to 300 keeping that outperform rating. Uh data center well above expectations on Blackwell momentum. That's what they cited in their note. BofA also up to 300. They're keeping a buy rating as well. They said the company, quote-unquote, more than delivered.
They say supply commitments are over three times up year-over-year to $95 billion ensuring Nvidia, quote, may well be the most dependable supplier that can serve the AI market that we believe could double towards $1.4 trillion in the next four years. Citi also raising to 300 keeping a buy rating. They think that their um GPU technology conference, their GTC conference in mid-March, will be positive for shares.
J.P. Morgan going up to 265 from 250 keeping an overweight rating. They said that their forward estimates on its better than expected revenues allowed them to increase their res- their estimates there. And they think any concerns over the company's 2027 growth outlook are likely overblown. And then the last one, Morgan Stanley.
They're up to 260 from 250 uh on, quote, another very strong quarter. So, all bulls there, Sam. Yeah, I mean, nothing but flattery and uh you know, sort of positive views coming from uh the Dan Ives and the uh Ragson's of the world. It's just not really being reflected in the stock, obviously. Perhaps something more technical at play with respect to this pullback we're seeing.
Molly, thanks so much for getting us across the details of what the sales side's saying today. Let's trade it now with Joe Tega, portfolio manager of the Rational Equity Armor Fund. Joe, I mean, Nvidia just continues to lose steam here, down 5.4% right now. Just talk us through an example trade on this one.
Yeah, what an interesting move. One of the greatest quarters you'd ever see for a company and just getting hammered. Now, this is coming off the heels of being at close to record highs. 212 is the all-time high, reached I think that was late last year for Nvidia, but absolutely a great quarter. And there's a lot of other companies that have great had great quarters which were not necessarily rewarded this cycle.
So, yeah, some volatility is coming in, the price is coming in. Just looking at some upside calls, especially call spread, seems very prudent to me. I do kind of think it's good the market's having some rotations back and forth. Maybe some of the harder hit areas like the software names are doing comparatively better today than the growth and the and the semiconductor names are doing today.
So, interesting to see that even though the semiconductors are proving their pudding with their fantastic earning, they're not necessarily getting a rewarded with the price. I think that'll return to form as long as we can continue to climb this wall of worry, which we will if things can stabilize and the economy remains stable, too.
So, just looking at an upside call spread, very simply, month of March, 200 220 would be my strikes. Just a little bit ago, it was about it was the price was close to 330, probably a little lower as Nvidia continues to drip a little bit lower as the trading day moves on. Yeah, I mean, we're seeing the technology sector under pressure.
I mean, obviously, we are seeing a degree of rotation there. I mean, the softwares aren't getting pulled down. But I I is this to your mind an Nvidia story or a broad type of chip story, a sort of AI valuation, show me the money story? Yeah, it's definitely a valuation story, absolutely right. It's not about the earnings cuz the earnings were there.
The earnings were everything that street could have looked for, hoped for, dreamed of. They got it with the Nvidia report. They're just saying, "We're not going to continue to pay this high of a multiple. We're going to let you grow into that multiple, which Nvidia is doing." We've seen about 4 months of sideways action really in the S&P 500.
We're starting to coil up here. It seems like something's getting ready to break. We're going to look be looking for a move soon. And you know, hopefully it's to the upside, but we'll be ready if it's to the downside, too. Okay, we'll be watching. We've got the S&P 500 6874 right now, down around 1%.
Joe, really appreciate it. Thanks so much for joining us today. Joe Tighe, portfolio manager of the Rational Equity Alpha Fund.
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