Earnings Season Is Rewarding Many of the Leading Stocks

Overall, the stock market does not mind all the political drama now underway.

Visitors are seen in front of a screen showing the images of Jensen Huang (R), CEO of NVIDIA, and Charles Liang, Founder and President of the Supermicro, at the Computex 2023 in Taipei on May 30, 2023. Sam Yeh/AFP via Getty Images

Commentary

Last week was monumental for two of the leading AI stocks, Super Micro Computer (SMCI) and Nvidia (NVDA). On Tuesday, SMCI announced preliminary sales estimates of $5.6 billion to $5.7 billion, which would represent at least 54% annual sales growth. The company also estimated operating earnings of 58 cents to 60 cents per share, which represents at least 5% annual earnings growth. Super Micro Computer also provided upbeat sales guidance that got Wall Street analysts excited and the stock rose powerfully.