Jensen Huang, president of Nvidia, holding the Grace hopper superchip processor used to generate AI at Supermicro’s keynote presentation during Computex 2023.
Walid Berrazeg | Lightrocket | Getty Images
Nvidia shares jumped more than 12% in premarket trading on Thursday after the chip giant posted huge earnings that beat Wall Street forecasts.
The US tech giant reported revenue of $22.10 billion for its fiscal fourth quarter, up 265% year-on-year, while net income rose 769%, as the company continues to see a boost from excitement around artificial intelligence.
Nvidia’s chips are used to train massive AI models like those developed by Microsoft and Meta.
Nvidia sees no signs of slowing down. The company forecast that its revenue in the current quarter will reach $24 billion, well above forecasts.
“Basically, the conditions are excellent for continued growth” into 2025 and beyond, Nvidia Chief Executive Jensen Huang told analysts on Wednesday, adding to bullish sentiment around the stock.
Nvidia’s data center business, which includes the company’s H100 graphics cards that are used for AI training, reported sales of $18.4 billion in the fourth quarter, up 409% year over year.
The positive outlook from Nvidia sparked a round of upgrades at the broker on Thursday. JPMorgan raised its price target on Nvidia shares from $650 to $850, while Bank of America Global Research raised its price target to $925 from $800.
Shares of Nvidia closed at $674.72 on Thursday. Shares were under pressure ahead of the earnings report as traders took a profit and investors worried that Nvidia might fail to live up to high expectations.
But its market-beating numbers allayed those fears and also lifted other global chip stocks.
https://www.cnbc.com/2024/02/22/nvidia-shares-pop-12percent-in-premarket-trade-after-ai-fueled-bumper-earnings-.html
