In a premarket trade on Thursday, Nvidia experienced a remarkable surge of more than 14% in its shares following the chip giant’s impressive earnings report that outpaced Wall Street estimates.
For its fiscal fourth quarter, the U.S. tech giant disclosed a whopping $22.10 billion in revenue, showcasing an extraordinary 265% year-on-year increase. The net income surged even higher, hitting an impressive 769%. The continued buzz around artificial intelligence played a crucial role in driving these remarkable financials.
Nvidia’s chips, integral for training extensive AI models, particularly those developed by industry leaders like Microsoft and Meta, continue to be a major contributor to its success.
Contrary to any signs of slowing down, Nvidia is projecting a robust revenue of $24 billion for the ongoing quarter, surpassing earlier estimates by a considerable margin.
Nvidia CEO Jensen Huang, in discussions with analysts on Wednesday, expressed strong optimism about the company’s future. He stated, “Fundamentally, the conditions are excellent for continued growth” in 2025 and beyond, contributing to the bullish sentiment surrounding the stock.
The Data Center business of Nvidia, which includes the H100 graphics cards utilized for AI training, reported sales of $18.4 billion in the fourth quarter, marking an impressive 409% year-on-year growth.
The optimistic outlook from Nvidia prompted a series of broker upgrades on Thursday. JPMorgan elevated its price target for Nvidia’s stock from $650 to $850, and Bank of America Global Research increased its target from $800 to $925.
Closing at $674.72 on Thursday, Nvidia’s stock faced pressure ahead of the earnings report, with traders securing profits and investors expressing concerns about meeting lofty expectations. However, the outstanding financial results not only alleviated those concerns but also had a positive ripple effect on other global chip stocks, propelling them higher.
