Nvidia shares leaped by over 12% in premarket trade, following the posting of record-breaking earnings that exceeded projections. For its fiscal fourth quarter, the U.S. tech giant reported a revenue of $22.10 billion, marking a remarkable 265% increase year-on-year. This surge in revenue was accompanied by a 769% increase in net income, reinforcing the company’s strong trajectory and continued growth driven by the field of artificial intelligence.
Nvidia chips are crucial for training massive AI models used by major tech companies such as Microsoft and Meta. The company’s optimistic outlook for the current quarter, forecasting a revenue of $24 billion, far surpassing previous estimates, has been met with a series of broker upgrades. JPMorgan raised its price target on Nvidia’s stock from $650 to $850, and Bank of America Global Research also increased its target from $800 to $925. This confidence in Nvidia’s future has propelled its stock price, which closed at $674.72 on Thursday.
Initial concerns and pressures surrounding the earnings report and anticipated performance were dispelled by Nvidia’s impressive results, leading to a surge in the stock market and boosting confidence in other leading semiconductor companies. The company’s latest financial results have not only exceeded expectations but also reaffirmed its position as a global technology leader, driving widespread market optimism and garnering increased investor interest.
