Nvidia announced its earnings for the first quarter of fiscal 2024 on Wednesday, with revenue of $7.19 billion exceeding market expectations by 13%. Nvidia also gave a forecast for second-quarter sales that was 50% higher than Wall Street expectations, driving the company’s after-hours stock price to soar, making it the fifth-largest company in the US stock market by value.
Nvidia’s stock price at the close of trading yesterday was $305.38, corresponding to a market value of $755.24 billion. As of this writing, the stock was trading at $396.03. This equates to a market capitalization of $979.43 billion. This means that in just a few hours, Nvidia’s market value increased by US$224.19 billion, the second largest single-day increase in history, second only to the US$597 billion increase created by PetroChina on November 5, 2007. It is worth mentioning that the rise in Nvidia’s stock price continues.
Goldman Sachs told Nvidia that this may be the best TMT (technology, media and telecommunications) earnings report we have seen since Zoom’s (ZM) earnings report in June 2020. JPMorgan doubled its price target on Nvidia to $500 from $250, citing “tremendous demand growth.”
Jen-Hsun Huang, founder and CEO of Nvidia, said that the increase in sales was mainly due to the “surging demand” for data center products in the market. This is driven by the recent boom in artificial intelligence. Businesses are scrambling to use Nvidia’s chips to train and deploy generative AI applications like ChatGPT.
Huang Renxun said that NVIDIA has turned to companies that sell entire AI supercomputing systems to large companies, not just chip company. These companies are willing to pay higher prices for NVIDIA products in order to obtain AI capabilities comparable to Silicon Valley technology companies. price.
