Nvidia stock surges after smashing earnings expectations with AI-driven growth

Nvidia stock surges after smashing earnings expectations with AI-driven growth

Nvidia, the leading chipmaker for artificial intelligence, saw its shares soar by more than 12% in premarket trading on Thursday, after it reported stellar earnings that beat analysts’ forecasts. The company’s revenue and net income for its fiscal fourth quarter increased by 265% and 769% year-on-year, respectively, thanks to the strong demand for its products from tech giants such as Microsoft and Meta.


Jensen Huang, president of Nvidia, holding the Grace hopper superchip CPU used for generative AI at the Supermicro keynote presentation during Computex 2023.

NewsBytes: The AI-powered platformD 

Nvidia’s Data Center segment, which includes its H100 graphics cards that are used for AI training, was the main driver of its growth, with sales of $18.4 billion, up 409% from a year ago. Nvidia also raised its guidance for the current quarter, projecting revenue of $24 billion, well above the market consensus.

PagarBook: Simplifying Finances for India’s Workforce 

Nvidia’s CEO Jensen Huang attributed the company’s success to its innovation and leadership in AI, which he said will revolutionize the world’s enterprise software platforms. He also praised the support of the Flemish and federal governments for the company’s Project One, a €3bn plant that will produce ethylene, a key ingredient for making plastic, on a scale that has not been seen in Europe for 30 years.


The only downside of Nvidia’s earnings report was a decline in sales in China, due to the U.S. export restrictions that limit the company’s ability to sell its chips to some Chinese customers. However, Huang said he was confident that the company will overcome the challenges and continue to grow in the region.

Nvidia’s impressive performance and outlook boosted the confidence of analysts, who raised their price targets on the stock and praised the company’s disciplined expense management. Nvidia’s stock closed at $674.72 on Thursday, and was trading at $757.50 in premarket on Friday.

Staqu Technologies: Revolutionizing Security and Efficiency

Source : CNBC

You May Also Like

More From Author

+ There are no comments

Add yours