- Nvidia shares surged over 10% to a record high on Thursday after reporting strong earnings and revenue for the fiscal first quarter, driven by robust demand for its AI chips.
- The company’s data center revenue skyrocketed by 427% during the quarter, and it issued an optimistic revenue guidance of $8 billion for the current quarter, exceeding estimates.
- Nvidia announced a 10-for-1 stock split, with the split-adjusted shares set to begin trading on June 10th.
Nvidia reported fiscal first quarter earnings on Wednesday that beat Wall Street‘s expectations, driven by strong growth in data center revenue. The results prompted analysts to raise their price targets on the stock, which jumped to record highs.
Nvidia’s Impressive Earnings Beat
Nvidia’s first-quarter revenue of $2.6 billion came in higher than the $2.46 billion analysts expected. The company’s data center revenue, which includes sales of its artificial intelligence chips, grew an impressive 42% during the quarter.
Nvidia also issued a strong second quarter revenue forecast of $2.8 billion, surpassing estimates of $2.66 billion. This unwavering demand prompted Nvidia shares to surge over 10% on Thursday, surpassing $1,000 per share for the first time ever. The stock has gained around 111% so far this year.
Analysts Grow More Bullish on Nvidia’s Growth Prospects
Despite earlier concerns of slowing growth, analysts have grown even more optimistic about Nvidia’s prospects following the strong quarterly results.
Bernstein raised its price target on the stock to $1,300, saying Nvidia’s growth narrative is “nowhere near its end.” Jefferies boosted its target to $1,350 based on expectations for further acceleration when Nvidia launches its new Blackwell AI graphics processors.
Nvidia also announced a 10-for-1 stock split that will take effect on July 10, making shares more accessible to a wider range of investors.
With demand for its AI chips showing no signs of abating, Nvidia continues to fire on all cylinders. The company’s latest results and forecasts affirm its leadership position in a transformative secular growth market.
