Nvidia Shares Continues To Soar; Up More Than 12% Following AI-Driven Earnings Beat

On Thursday, Nvidia shares surged more than 12% in premarket trading as the chip titan revealed record-breaking results that exceeded Wall Street projections.

Published on Feb 22, 2024  |  04:53 PM IST |  40.2K
Image Courtesy:  Nvidia
Image Courtesy: Nvidia

Nvidia, the market leader in artificial intelligence processors, revealed quarterly financial figures on Wednesday that showed the business's rise to prominence in the field. The company also predicted a sustained increase in sales due to customer demand for its products.

Nvidia stocks see a 12 % jump

Premarket trading on Thursday saw a more than 12% increase in Nvidia shares as the semiconductor titan revealed impressive profits that exceeded Wall Street forecasts.

The American technology giant reported fiscal fourth-quarter revenue of $22.10 billion, up 265% year over year, and net income of $769%, as the business continues to benefit from the buzz surrounding artificial intelligence. Large artificial intelligence models, like those created by Microsoft and Meta, are trained using Nvidia CPUs.

Nvidia is not ready to slow down. The business predicted that it would generate $24 billion in revenue this quarter, far more than expected.

Nvidia CEO Jensen Huang boosted the positive sentiment surrounding the company on Wednesday by telling analysts that "fundamentally, the conditions are excellent for continued growth" in 2025 and beyond.

Sales of $18.4 billion were reported in the fourth quarter by Nvidia's Data Center division, which encompasses the company's H100 graphics cards used for AI training. This represents a 409% year-over-year rise.

Nvidia's optimistic forecast sparked a wave of broker upgrades on Thursday. Bank of America Global Research increased its target price for Nvidia's stock from $800 to $925, while JPMorgan increased its target price from $650 to $850.

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On Thursday, Nvidia's shares finished at $674.72. Before the earnings release, traders were taking profits, and investors were worried that Nvidia might not be able to meet high expectations. As a result, shares were under pressure. However, those concerns were allayed by its market-beating performance, which also helped other global chip stocks rise.

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Know more about Nvidia

Who is the CEO of Nvidia?
Jen-Hsun Jensen Huang, an American businessman, electrical engineer, and the co-founder, president and CEO of Nvidia Corporation

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