Technology
Thursday, February 22nd, 2024 5:23 pm EDT
Key Points
- Surge in Nvidia Shares:
- Nvidia shares experienced a significant 15% surge on Thursday morning, following the announcement of stellar earnings that surpassed Wall Street estimates.
- Impressive Financial Performance:
- The U.S. tech giant reported a remarkable revenue of $22.10 billion for its fiscal fourth quarter, marking a remarkable 265% year-on-year increase, while net income soared by an extraordinary 769%, driven by the ongoing excitement surrounding artificial intelligence.
- Bullish Outlook and Market Response:
- Nvidia forecasts continued robust performance, with a projected revenue of $24 billion for the current quarter, well ahead of estimates. CEO Jensen Huang expressed optimism for sustained growth, particularly emphasizing favorable conditions expected in 2025 and beyond. The positive outlook prompted broker upgrades, with JPMorgan and Bank of America Global Research raising their price targets on Nvidia’s stock, reflecting bullish sentiment. Despite initial concerns and profit-taking pressure, Nvidia’s strong financial results dispelled fears and bolstered other global chip stocks.
Nvidia shares surged by 15% following the release of its impressive earnings report, surpassing Wall Street expectations. The chip giant reported a remarkable revenue of $22.10 billion for its fiscal fourth quarter, marking a staggering 265% increase compared to the previous year. Net income also saw an extraordinary surge of 769%, fueled by the ongoing excitement surrounding artificial intelligence, for which Nvidia’s chips are instrumental in training massive AI models developed by tech giants like Microsoft and Meta. The company’s optimism extends beyond the current quarter, with a forecasted revenue of $24 billion, significantly exceeding estimates. Nvidia CEO Jensen Huang expressed confidence in continued growth, particularly highlighting the favorable conditions expected in 2025 and beyond. The Data Center business, featuring H100 graphics cards utilized for AI training, drove substantial sales growth of $18.4 billion in the fourth quarter, representing a remarkable 409% year-on-year increase. This positive outlook prompted a wave of broker upgrades, with JPMorgan and Bank of America Global Research raising their price targets on Nvidia’s stock to $850 and $925, respectively. Despite initial concerns and profit-taking pressure leading up to the earnings report, Nvidia’s robust performance not only allayed fears but also lifted other chip stocks globally. As Nvidia continues to ride the wave of AI-driven innovation, its stellar financial results underscore its position as a key player in the semiconductor industry.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/22/nvidia-shares-pop-12percent-in-premarket-trade-after-ai-fueled-bumper-earnings-.html
