- Nvidia reported blowout quarterly results, with revenue up over 50% to $7.64B, driven by booming demand for its AI and data center chips
- Nvidia’s stock hit a record high of $785.38, adding $277B in market value in one day and making Nvidia the 3rd most valuable public company
- Nvidia expects strong growth to continue with Q1 revenue guidance of $8.1B, though risks remain around reduced sales to China due to export restrictions
Nvidia reported blowout quarterly results, beating expectations and igniting a rally in tech stocks. The chipmaker’s stock jumped over 16%, boosting its market value to $1.96 trillion. The surge underscores Wall Street’s optimism about artificial intelligence and the key role Nvidia’s chips play.
Nvidia Delivers Record Revenue Growth
Nvidia’s fourth quarter revenue soared over 50% to $7.64 billion, smashing expectations. The company’s data center chip sales, which power AI computing, jumped 11% from the previous quarter to $3.62 billion. Nvidia said hyperscale customers like Google and Microsoft continued to invest heavily in AI infrastructure. The results showed unrelenting demand for Nvidia’s specialized AI chips.
Share Price Hits New Highs
Nvidia’s stock closed at a record $785.38 on Thursday after the earnings report, up over 16% for the day. The jump added a massive $277 billion in market capitalization, the largest ever one-day gain for a U.S. company. Nvidia is now the third most valuable public company after Apple and Microsoft. The chipmaker’s shares have surged 58% so far this year, accounting for a quarter of the S&P 500’s gain.
Bullish Forecast Fuels More Gains
Nvidia expects first quarter revenue to rise 43% year-over-year to $8.1 billion, exceeding analyst forecasts for $7.3 billion. The upbeat guidance indicates no slowdown in demand, with Nvidia predicting its new AI models will drive growth across key industries. Multiple analysts raised their price targets on Nvidia’s stock following the report. However, some worry the shares have climbed too far, too fast.
Risks Remain Around China Sales
While Nvidia is firing on all cylinders, its sales in China dropped to $400 million last quarter from $1.8 billion in the previous period. The decline follows new U.S. restrictions on exporting chips to China. Nvidia said it continues working to get license approvals for future sales there. But reduced access to China’s massive tech market poses a challenge. Still, Nvidia sees minimal impact so far, with demand booming elsewhere.
Conclusion
Nvidia is riding a wave of AI excitement, with its specialized chips enabling breakthroughs across industries. While regulatory risks linger, the company shows no signs of slowing down. Nvidia’s results and forecasts indicate it will continue to be a core holding for investors betting on AI and cloud computing trends.
