Is NVIDIA the next Cisco? What will the week bring?

Cisco, one of the largest IT companies in the world, was the star of the American trading floor for over two decades. After the dot-com bubble burst, Cisco shares lost more than 80% of their value and have yet to return to their historic highs set in the early XNUMXs. Will history repeat itself and NVIDIA become the new Cisco?

Nvidia will publish the results

American indices remain close to their historical peaks, and recent mixed data from the US complicate the situation related to the shape of the Fed's monetary policy. Inflation in January turned out to be much higher than expected, and the price dynamics in services increased to 3,6%. Retail sales results in January may also be worrying - much weaker than expected - as they raise questions about whether demand will continue to support the US economy.

Market participants like this ambiguity in macroeconomic data, especially after the comments of Fed representatives who were not particularly concerned about the inflation data for January. Nevertheless, in 2024 the market is pricing in less than 4 interest rate cuts FOMC 25 bp each. each of which is to take place in June. Before the publication of January data, there were 5 full reductions.

Easing monetary conditions in the United States will affect the situation on the local stock market. This is especially important for shares of companies such as NVIDIA, which have seen almost vertical increases in recent months. Many market analysts compare the current situation of the graphics card manufacturer with Cisco's situation from over twenty years ago. NVIDIA will release its fourth-quarter fiscal 2024 results next Wednesday after the close of business. Expectations are high - will the star of Wall Street's AI craze manage to live up to them?

We invite you to meet the economist XTB Michał Stajniak, in which he will focus on the key topics of this week.

In today's webinar:

• What do the latest macroeconomic data tell us?
• Weaker data from the UK – what next for GBP?
• Is NVIDIA the next Cisco?

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones are available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Michał Stajniak

Michał Stajniak - Raw Material Market Analyst in XTB. It places particular emphasis on the linkages between the behavior of commodity prices and the currencies of economies heavily dependent on exports of commodities such as oil, iron ore, gold and powdered milk. He is the author of frequent comments comparing commodity price indices with currency pairs such as AUDUSD, NZDUSD, USDCAD, USDNOK, or EURNOK. He represents XTB in the media (including TVN24 BIS, Polsat News, TVP Info, Bankier TV or Onet TV) and is the author of articles in the financial press such as Parkiet, Puls Biznesu and Dziennik Gazeta Prawna. He is a practitioner of the stock market and the derivative market. In his approach, he values ​​fundamental analysis above all, but often uses Fibonacci levels to determine the demand and supply zones needed in a Price Action strategy. A graduate of Quantitative Methods in Economics and Information Systems at the Warsaw School of Economics.

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