NVIDIA Corp.’s CEO, Jensen Huang, has resigned, sending shock waves through Wall Street and raising concerns about the company’s future. This development comes as a surprise, given Huang’s prominent role in the AI Revolution.
A writer who recently unveiled a new investment service, Prime Portfolio, had selected the first 25 stocks for the portfolio just last weekend, and NVIDIA was not one of them. Despite this, the writer still believes NVIDIA has tremendous earnings power and will be watching its upcoming earnings report closely.
The market is rotating, and yesterday’s winners may not necessarily lead tomorrow. This rotation is reflected in the performance of major stock market sectors over the past six months, with Healthcare and Financials leading the way, while Technology and Communication Services have struggled.
NVIDIA Earnings Outlook
NVIDIA‘s earnings power did not disappear overnight, with analysts forecasting third-quarter sales growth of about 91% and earnings growth of 90% before the leadership shakeup. The company is scheduled to report earnings on November 17.
The writer recommends that investors hang on to their NVIDIA shares while assessing the situation. The leadership shakeup creates uncertainty, but NVIDIA still has its technology, customers, and enormous demand for the chips powering the AI Revolution.
There are still plenty of unanswered questions about NVIDIA‘s future, including whether sensitive information was exposed and what happens to the company’s relationship with China. The writer will be paying close attention to management’s guidance and whether analysts begin cutting their estimates.
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A company like IREN Ltd. reported strong top-line growth, with revenue jumping 66% to $228.3 million, but also posted a steep $263 million net loss and warned of rising costs and a delay to its $4 billion annual recurring revenue target.
This rotation in the market is already reflected in the writer’s new Prime Portfolio, with a good portion of the first 25 picks being energy companies and three healthcare stocks. These choices are based on a quantitative system that identifies companies with strong earnings prospects.
The writer’s goal is to assemble the best stocks based on what the quantitative system is telling them and make adjustments as market conditions change. With over 40 years of experience studying the stock market, the writer knows that the market never stands still, and yesterday’s winners won’t always lead tomorrow.
Market Rotation Intensifies
As the market continues to rotate, investors need to be aware of the changes and adjust their strategies accordingly. The writer’s Prime Portfolio is designed to help investors stay on the right side of this rotation and find the next big winners.
The market’s rotation is driven by the shift in market leadership, with money moving out of yesterday’s winners and into new opportunities. The writer’s quantitative system tracks these shifts, helping to identify the companies that could emerge as the next big winners.
According to the writer, the market’s list of winners is narrowing, and political gridlock could reshape Wall Street in 2027. The rotation into new sectors may be just getting started, and investors need to be prepared to adapt to these changes.
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The writer’s Prime Portfolio includes tools to help investors allocate their money, monitor their holdings, and know when to make a change. With the market constantly evolving, investors need to stay informed to find the best opportunities.
The writer’s approach is based on assembling the best stocks and making adjustments as market conditions change. This approach is designed to help investors stay focused on what’s working and avoid getting caught up in the hype surrounding certain stocks.
Following the Data
On November 5, IREN Ltd. reported strong top-line growth, but also posted a steep net loss, missing earnings estimates. This example illustrates the importance of following the data rather than getting caught up in the hype surrounding certain stocks.
Investment Service and Market Analysis
The writer has unveiled a brand-new investment service called Prime Portfolio. The service includes a monthly rotation model to track shifts in market leadership. This model helps spot when money is moving out of yesterday’s winners and into new opportunities.
A special Allocation Tool is designed to help determine how much to invest in each stock. Ongoing portfolio updates will be provided to alert when it’s time to make a move.
The writer believes there’s never been a better time to put the investment service to work.
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