Tech Titans Nearing Record-Breaking Level Hang on Nvidia

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(Bloomberg) -- Spring has sprung, particularly so for the stocks of technology heavyweights.

The NYSE FANG index of firms from Apple Inc. to Netflix Inc. has rallied for 10 out of 11 trading sessions to reach 2,753, less than 1 percent away from a record 2,770 reached in mid-March.

Whether that record gets broken sooner than later may hinge on Nvidia Corp., which reports after the close. It’s the last of the 10 companies on the index of tech megacaps to publish earnings. The stock has advanced 34 percent this year, and the pressure has mounted for the company to report a level of growth that would justify the price that’s about 37 times projected earnings.

Santa Clara-based Nvidia is expected to forecast fiscal second quarter revenue of $2.95 billion, up 32 percent from the same time a year ago, according to an average of analyst estimates compiled by Bloomberg.

The gauge of technology stocks, the biggest gainer among the S&P 500’s industry groups this month, has rallied two times faster than the materials index, the second-best performer. The cost of hedging against a 10 percent drop in the PowerShares QQQ Trust Series ETF hovers near a March low.

Apple alone has risen for nine straight sessions, the longest streak since July, after stellar quarterly earnings. Facebook has rallied 7.6 percent this month as shorts headed for exits amid signs the data breach scandal is easing.

©2018 Bloomberg L.P.

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