Nvidia Stock Jumps as AI Chip Demand

Nvidia Stock Jumps on Blockbuster Earnings, Quells AI Demand Fears

NVIDIA Corporation (NVDA) saw its shares rally after the bell on Wednesday following the release of quarterly earnings that crushed expectations, allaying recent market concerns about the sustainability of the artificial intelligence boom.

Heading into the report, the stock had already shown strength, closing the regular session up 1.4% at approximately $196.15, a price level that marked a three-month high. The positive momentum was fueled by optimism over the company’s fiscal fourth-quarter results.

After the market closed, Nvidia delivered the numbers investors were hoping for. The chipmaker reported quarterly revenue of $68.1 billion, handily beating analyst estimates of $66.2 billion. Earnings per share also surpassed expectations, coming in at $1.62, compared to the $1.53 forecast. The data center segment, Nvidia’s core business, continued its torrid pace, with revenue surging 75% to a record $62.31 billion.

Perhaps most importantly, the company provided an optimistic forecast for the current quarter, projecting revenue of approximately $78 billion, well above the Wall Street consensus of $72.8 billion. CEO Jensen Huang emphasized the insatiable demand for the company’s technology, stating in a release that “our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth”.

In after-hours trading, Nvidia shares jumped more than 3% as the results and guidance helped ease concerns that massive investments in AI infrastructure might be slowing.

News source links: Economic Observer, Bloomberg, 智通财经