Technology
Friday, February 23rd, 2024 4:54 pm EDT
Key Points
- Nvidia briefly surpassed $2 trillion in market capitalization following a positive earnings report but saw a short-lived increase, with shares down about 1% at 11 a.m. ET after a 16% rise on Thursday.
- The company reported exceptional financial performance for its fiscal fourth quarter, posting $22.10 billion in revenue, a 265% increase from the previous year, and $12.29 billion in net income, up 769% from last year, surpassing analyst expectations.
- Nvidia’s success is attributed to the soaring demand for artificial intelligence capabilities, with the company manufacturing graphics processors for servers powering large AI models. CEO Jensen Huang expressed confidence in the company’s growth prospects, expecting $24.0 billion in sales for the current quarter, surpassing analyst forecasts.
Nvidia experienced a momentous surge in its market capitalization, briefly surpassing $2 trillion during intraday trading on Friday, propelled by the optimistic earnings report it released on Wednesday. However, this milestone was short-lived as Nvidia’s shares dipped around 1% by 11 a.m. ET, following a remarkable 16% increase in stock value the previous day. The company reported a staggering $22.10 billion in revenue for its fiscal fourth quarter, marking a remarkable 265% surge from the previous year and surpassing analysts’ expectations of $20.62 billion. Additionally, Nvidia’s net income for the quarter soared to $12.29 billion, a remarkable 769% increase from the previous year. This exceptional performance can be attributed to the relentless demand for artificial intelligence capabilities within the tech sector, with Nvidia’s graphics processors powering the servers driving large AI models. Nvidia’s bullish trading cycle is evident, with CEO Jensen Huang expressing confidence in the company’s continued growth prospects during the quarterly investor call. With Nvidia expecting $24.0 billion in sales for the current quarter, surpassing analyst forecasts, the company appears poised to maintain its upward trajectory in the foreseeable future.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/23/nvidia-briefly-surpasses-2-trillion-in-market-cap-during-intraday-trading.html
