Three tech companies - Nvidia, Apple, and Vertiv - break quarterly records, with positive growth trends.

From Nasdaq: 2024-06-03 16:07:00

The Q1 earnings season showed strong growth for technology companies, with Nvidia, Apple, and Vertiv leading the trend. Earnings and revenue for the sector are expected to increase by +14.4% and +9.3% in Q2, with all three companies posting quarterly records. Vertiv’s stock surged on AI interest, and Apple’s stock saw a surge on services growth.

Nvidia continues to be a strong buy for AI exposure, with data center revenue exceeding expectations. The stock remains a Zacks Rank #1 (Strong Buy) and is trading at a forward 12-month earnings multiple of 38.1X. All three companies – Nvidia, Apple, and Vertiv – posted quarterly records, underscoring a strong performance in the Q1 earnings season.

Vertiv’s stock gained momentum on AI interest, posting its highest backlog in company history at $6.3 billion. The company provides services for data centers and is expected to see robust growth, with a Zacks Consensus EPS estimate suggesting a 36% year-over-year increase in earnings. Vertiv also increased its full-year guidance and saw significant organic order growth.

Apple’s stock surged on services growth, with Services revenue hitting a quarterly record of $23.9 billion. Share performance was boosted by positive reports of iPhone shipments in China, easing concerns over demand issues. Apple’s Services portfolio has been a solid growth driver, decreasing reliance on the iPhone and showing consistent positive surprises in sales.



Read more at Nasdaq: These 3 Tech Companies Recently Broke Quarterly Records