Market Analysis: Nvidia and Amazon Show Promise Despite Challenges

In light of recent market fluctuations, Nvidia and Amazon shine brightly. Nvidia showcases robust revenue growth and solid net income, while Amazon excels with significant earnings growth, promising a bright outlook for investors.

Date: 12-03-2025

AI Rating: 7

Nvidia Analysis: Nvidia reported impressive financial results with a revenue increase of 78% to $39 billion, driven by demand in the data center sector spurred by AI hardware. The company achieved a non-GAAP net income increase of 71% to $0.89 per diluted share. Despite a slight dip in gross margin by 3 percentage points, CFO Colette Kress reassured that gross margins will improve due to ramping sales of their upcoming product, Blackwell. The current decline in Nvidia's stock, nearly 30% from its peak, presents an attractive valuation at 24 times forward earnings, the lowest multiple in 12 months.

Amazon Analysis: Amazon reported a total revenue increase of 10% to $187 billion and saw a significant rise in GAAP net income by 86% to $1.00 per diluted share. Additionally, the operating margin expanded by more than 3 percentage points. Although Amazon's advertising segment missed revenue expectations, its overall performance exceeded analyst estimates in other segments, showcasing its strong market presence. Analysts project strong adjusted earnings growth of 14% in 2025, amidst a 20% stock decline, highlighting its potential for recovery.

Stocks: NASDAQ:AMZN NASDAQ:NVDA