Nvidia has found success in China by selling automotive chips to the country’s electric car companies. But the US semiconductor giant has been barred from shipping some products to China. For now, electric car makers don’t seem to be affected.
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Check out the companies making headlines in midday trading Tuesday:
Palantir – The software company’s stock price rose 13%. The action comes a day after Palantir reported that it made a profit in the fourth quarter, its first quarter of positive GAAP earnings, of $31 million. Palantir’s revenue was also stronger than expected, reporting a year-over-year increase of 18% for the quarter, while US commercial revenue grew 12%.
First Solar – Shares of the solar company fell 2.7% after Evercore ISI downgraded the line from outperform. The Wall Street firm said recent tailwinds may now be fully priced into the stock. The company’s price target implies a 6% downside from Monday’s close.
Avis Budget – Shares jumped 6.5% after Avis beat expectations in its latest quarterly report. The car rental agency reported adjusted earnings of $10.46 per share, better than the $6.79 forecast, according to consensus estimates from Refinitiv. It posted revenues of $2.77 billion, better than expectations of $2.69 billion.
Nvidia – The semiconductor stock added 3.4% after Bank of America raised its price target on the company to $255 per share from $215 and said it is well-positioned to lead the “AI arms-race.”
Ecolab – Shares gained 5% after the chemical company reported higher-than-expected earnings of $1.27 per share, excluding items, beating analysts’ estimates of $1.25 per share, according to in FactSet. Ecolab reported net income of $264.4 million for the fourth quarter.
Occidental Petroleum – The energy stock gained more than 1% after Goldman Sachs upgraded Occidental Petroleum to buy from neutral following the shares’ recent decline. The Wall Street firm said that the current valuation is difficult to reconcile with the quality of the underlying assets and cash flow power through a cycle.
Synopsys – The software company’s stock price gained 3% during midday trading ahead of Wednesday’s scheduled earnings release.
Zoetis – Shares rose more than 5% after the animal pharmaceutical company reported $1.15 in adjusted earnings per share, matching analysts’ estimates, according to FactSet. Zoetis’ earnings came in slightly higher than expected.
Palo Alto Networks – Shares added about 1.5% after Goldman Sachs initiated coverage of the cybersecurity stock with a buy rating. The company said Palo Alto’s diversification strategies will help the stock move forward.
Cadence Design Systems – The software stock rose 5.3% as the company beat estimates on both the top and bottom lines for the fourth quarter, according to FactSet. Cadence also topped analysts’ expectations for first-quarter guidance and the 2023 full year.
Arista Networks – Shares rose 2.4% during Tuesday’s midday trading session after the company reported fourth-quarter revenue and earnings on Monday that beat Wall Street expectations.
– CNBC’s Yun Li, Alex Harring, Sarah Min and Michelle Fox Theobald contributed reporting.
