Nvidia shares surged more than 9% after the company reported earnings that surpassed Wall Street estimates, showcasing continued strong demand for its artificial intelligence chips. The data center revenue for Nvidia saw an exceptional increase of 427% during the quarter, highlighting the company’s growth and market dominance.
Nvidia CEO Jensen Huang gave a keynote address during the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.
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With shares closing above $1,000 for the first time and peaking at $1,037.99, Nvidia’s stock hit a record high. The strong financial performance was evident as the company reported first-quarter revenue of $26.04 billion, exceeding analysts’ expectations. Additionally, Nvidia provided a bullish outlook, projecting $28 billion in revenue for the current quarter, surpassing predictions once again.
Analysts have expressed optimism about Nvidia’s future prospects, with Bernstein raising its price target to $1,300 due to the ongoing growth potential of the company. Jefferies also increased its target to $1,350, citing the promising outlook for Nvidia’s new AI graphics processors named Blackwell and anticipating further positive surprises later in the year upon their launch.
Nvidia’s net income saw a significant rise, with the company reporting $14.88 billion, or $5.98 per share, compared to $2.04 billion, or 82 cents per share, in the same quarter last year. This remarkable growth in earnings further solidifies Nvidia’s position as a leader in the AI and data center chip market.
In a strategic move, Nvidia announced a 10-for-1 stock split, with the split-adjusted shares commencing trading on June 10. This decision is aimed at making the stock more accessible to a broader range of investors and potentially driving further growth in the company’s valuation.
