Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.
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Nvidia Shares rose more than 9% on Thursday after the company reported earnings on Wednesday that beat Wall Street estimates and showed there remains strong demand for its artificial intelligence chips. The company’s data center revenue increased a whopping 427% during the quarter.
Shares closed above $1,000 for the first time and peaked at $1,037.99. The previous high of $953.86 was reached on May 21st.
First-quarter revenue was higher than expected at $26.04 billion, compared to the LSEG estimate of $24.65 billion. And the demand is not slowing down.
The company gave strong guidance, saying it expected revenue of $28 billion for the current quarter, beating the LSEG estimate of $26.61 billion.
Although some analysts fear an “air pocket,” others have become even more optimistic since the company’s results. Bernstein’s Stacy Rasgon raised the company’s price target to $1,300 and wrote in a note to investors that the narrative surrounding the company is “clearly far from over, or probably far from peaked.” He wrote that stocks look cheap.
Jefferies raised its stock target to $1,350 on a strong rise in its new AI graphics processors called Blackwell and expectations of an acceleration in the “size of the beats” later this year when the platform launches.
Nvidia reported net income of $14.88 billion, or $5.98 per share, a dramatic increase from the $2.04 billion, or 82 cents per share, reported in the year-ago quarter.
Nvidia announced a 10-for-1 stock split on Wednesday, with shares set to trade on a split-adjusted basis when markets open on June 10.
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2024-05-23 20:17:54
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