As AI chips increase sales guidance, the market cap of NVDA increases by around $190 billion.
- Nvidia stock surges 25% after earnings beat
- Nvidia CEO says the company is seeing “surging demand” for data center products
- Nvidia partners with Microsoft and Dell to accelerate AI adoption
- Nvidia collaborates with ServiceNow to develop enterprise-grade AI capabilities
- Nvidia stock is up 109% year to date
Nvidia’s stock price surged 25% in after-hours trading on Wednesday after the company reported strong earnings for its fiscal 2024 first quarter. Revenue came in at $7.19 billion, beating analysts’ expectations of $6.52 billion. Earnings per share were $1.09, also beating expectations of 92 cents.
Nvidia CEO Jensen Huang said the company is seeing “surging demand” for its data center products, which are used for a variety of tasks such as artificial intelligence, machine learning, and high-performance computing. Nvidia also announced partnerships with Microsoft and Dell to accelerate AI adoption.
As businesses scramble to include generative AI into each product, service, and business process, a trillion dollars worth of installed global data center equipment will switch from general-purpose to accelerated computing, according to Huang on the results call. The H100, Grace CPU, Grace Hopper Superchip, NV Link, Quantum 400 InfiniBand, and BlueField-3 DPU are the only products in our data center family that are currently in production. To keep up with the soaring demand for them, we are greatly expanding our supply.
Speaking of data centers, that industry generated $4.3 billion in sales in Q1, up 14% from the same period last year. This is notable because throughout the last year, Nvidia’s data center revenue generally declined, which experts noted at the time. Those cloudy days seem to be behind us now.
Nvidia stock is up 109% year to date, making it one of the best-performing stocks in the market. The company’s strong earnings and growth prospects are likely to continue to drive its stock price higher in the future.
Nvidia has surpassed its previous record.
After hours, shares increased by roughly 23% to $375, surpassing the previous record high of $246.47 set in November 2021. The stock must calm down because the Relative Strength Index (RSI) is currently very overbought. However, you can feel the enthusiasm. On Thursday, a general market reversal higher will probably be triggered by these earnings alone.
