Nvidia stock closed 16% higher on Thursday, boosted by enthusiasm for artificial intelligence
Main Key Point
- Nvidia stock closed 16% higher on Thursday, boosted by enthusiasm for artificial intelligence and a day after the semiconductor giant reported strong earnings that beat Wall Street expectations.
- The company reported fiscal fourth-quarter revenue of $22.1 billion, an increase of 265% year-over-year, and net income of $769%.
- Nvidia chips are used to train huge AI models developed by Microsoft and Meta.
Nvidia Shares closed 16% higher on Thursday, a day after the semiconductor giant reported strong earnings that beat Wall Street expectations.
The US technology giant reported fiscal fourth-quarter revenue of $22.1 billion, up 265% year-on-year, and net profit increased 769%, on the back of growing enthusiasm for artificial intelligence. I reported.
Nvidia chips are used to train giant AI models developed by Microsoft
and meta
Nvidia shows no signs of slowing down. The company expects sales to reach $24 billion this quarter, well above expectations.
Nvidia CEO Jensen Huang told analysts on Wednesday that “fundamentally, conditions are great for continued growth through 2025 and beyond,” adding to the bullish sentiment on the stock. Increased ment.
Nvidia’s data center business, which includes the company’s H100 graphics cards used for AI training, reported $18.4 billion in revenue in the fourth quarter, up 409% year over year.
Nvidia’s positive outlook led to a series of broker upgrades on Thursday. JPMorgan raised its price target on Nvidia stock from $650 to $850, and Bank of America Global Research raised its price target from $800 to $925.
Nvidia stock closed Wednesday at $674.72. Shares were under pressure ahead of the earnings report as traders booked profits and investors worried that Nvidia won’t meet lofty expectations.
But market-beating data eased those concerns and boosted other global semiconductor stocks.