When semiconductor companies around the world were reporting more subtle forecasts after a home run in 2021, the down cycle looks imminent. NVIDIA‘s latest results jolted the market back into a potential uptrend, as results were better than expectations while shedding light on potential catalysts and prospects. So what exactly made investors suddenly bullish again about this company?

1. YoY drop for the fiscal year, but bright spots in Q4’23

Source: NVIDIA Corporation Q4FY23 CFO Commentary Semiconductor stocks all rallied significantly during the lockdown, fueled by cloud migration, higher computer device sales, and also the cryptocurrency mania. However, after a scintillating run, with the world grasping onto measures to fight inflation, NVIDIA was not spared as well. The topline of FY 2023 was flattish versus FY 2022. However, gross margins dropped by 8.0 pts. while operating expenses ballooned up 50%. This led to a drawdown of its operating income and net income by 58% and 55% respectively....