NVIDIA stock price skyrockets 17% post stellar earnings, propelling the tech giant’s market cap beyond $700 billion. The surge, fueled by robust financials and optimistic forecasts, triggers a global market rally, with NVIDIA’s influence lifting the entire S&P 500 and reigniting enthusiasm for artificial intelligence.
NVIDIA Stock zooms
Shares of Nvidia witnessed an impressive 17% surge on Thursday morning, following the chip giant’s outstanding earnings announcement that surpassed Wall Street estimates.
NVIDIA’s Robust Earnings
The US tech giant reported a staggering revenue of $22.10 billion for its fiscal fourth quarter, marking a remarkable 265% increase from the previous year. Net income also witnessed an exceptional surge of 769%, propelled by the ongoing wave of enthusiasm for artificial intelligence.
Nvidia continues to display unwavering momentum, with a forecasted revenue of $24 billion for the current quarter, surpassing expectations. CEO Jensen Huang expressed confidence in the company’s financial outlook, stating, “Monetarily, the conditions for continued growth to 2025 and beyond are excellent.”
Data Center Dominance
Nvidia’s data center business, inclusive of the powerful H100 graphics cards driving AI training, reported sales of $18.4 billion in the fourth quarter, showcasing an impressive year-over-year increase of 409%.
AI Influence
Nvidia’s chips play a pivotal role in powering the extensive AI models developed by tech giants like Microsoft and Meta, contributing significantly to the training of these models.
Also Read:
ZEE Entertainment share price: Stock crashes 14 pc on THIS update
Vibhor Steel Tubes IPO listing: Sensational debut! Shares zoom about 200 pc over IPO price
Broker Upgrades and Market Impact
The optimistic outlook from Nvidia prompted a series of broker upgrades on Thursday. JPMorgan raised the price target for Nvidia stock from $650 to $850, while Bank of America Global Research elevated its target from $800 to $925.
US Market Rally
Nvidia’s robust earnings triggered a global stock market rally, propelling tech stocks and driving US, European, and Japanese indexes to record highs. The chipmaker’s shares surged by 15% on Thursday, adding nearly $260 billion to Nvidia’s market capitalization, surpassing $700 billion for the year.
Nvidia’s significant market influence, accounting for over a quarter of the S&P’s year-to-date growth, automatically boosted the entire market by 0.6% during Thursday’s surge.
The positive financial report not only solidified investor confidence but also reignited enthusiasm about the potential of artificial intelligence. Jensen Huang emphasized a global desire to leverage generative AI, describing it as reaching “The Tipping Point.”
Nvidia’s prior bumper report in May played a crucial role in sparking investor enthusiasm for AI. Vishal Vivek, a strategist at Citi’s equity trading desk, noted that concerns about fading euphoria were dispelled, reaffirming the ongoing vibrancy of the AI theme in the market.
