Nvidia experienced a significant surge in its stock value, with shares soaring over 12% in premarket trading on Thursday following the release of impressive earnings that surpassed Wall Street’s expectations. The chip giant reported robust revenue of $22.10 billion for its fiscal fourth quarter, marking a remarkable 265% increase compared to the previous year. Moreover, the company’s net income skyrocketed by 769%, buoyed by the ongoing excitement surrounding artificial intelligence.
Nvidia’s chips play a crucial role in training large-scale AI models developed by tech giants such as Microsoft and Meta. The company remains optimistic about its growth trajectory, with no signs of slowing down. Nvidia anticipates its revenue for the current quarter to reach $24 billion, significantly exceeding analysts’ estimates. CEO Jensen Huang expressed confidence in the company’s prospects, citing excellent conditions for continued growth in 2025 and beyond, further fueling positive sentiment around the stock.
The Data Center business segment, encompassing Nvidia’s H100 graphics cards utilized for AI training, reported impressive sales of $18.4 billion in the fourth quarter, representing a remarkable 409% year-on-year growth. The optimistic outlook from Nvidia prompted several brokerage firms to upgrade their ratings on the company’s stock. JPMorgan raised its price target from $650 to $850, while Bank of America Global Research increased its target from $800 to $925.
Despite concerns among traders and investors leading up to the earnings report, reflected in downward pressure on Nvidia’s stock, the company’s stellar financial performance dispelled apprehensions and also had a positive impact on other global chip stocks, contributing to broader market gains. Nvidia’s closing stock price on Thursday stood at $674.72, reflecting the market’s renewed confidence in the company’s future prospects.