Nvidia (NVDA) shares roses after the company’s second quarter earnings smashed expectations on both the top and bottom lines. But how sustainable is the stock's growth? Interactive Brokers Chief Strategist Steve Sosnick and Yahoo Finance Tech Editor Dan Howley join Yahoo Finance Live to discuss.
On Nvidia’s earnings call, the company explained how the technology is being used and the partnerships it has with other companies. Howley explains, “there are means to an end here, where real products come of this” and these products, “will benefit consumers, as well as regular workers.”
In the 1990s, tech companies Qualcomm (QCOM) and Cisco (CSCO), saw their stocks rise, but “the market got way ahead of itself,” Sosnick says, and the stocks ultimately dropped. For Nvidia, “there are other headwinds in terms of valuation that we have to consider. And the question is, will this deliver and will this deliver to bottom lines, not just be a great technology?” Sosnick explains.
