Nvidia Stock Increase reaches a high record as Nvidia surges 15% following positive earnings. Due to the rising demand for artificial intelligence across the globe, Nvidia Corp.‘s net income for the fourth quarter ended January 28, 2024, increased by 769 percent year over year and 33 percent sequentially to $12.3 billion.
Leading supplier of artificial intelligence (AI) chips, Nvidia, has exceeded market expectations by projecting a strong threefold gain in quarterly revenue, which has sent its shares up 10% in after-hours trading, according to Reuters.
Thursday morning saw a 15% increase in Nvidia shares, one day after the semiconductor company revealed record profits that exceeded Wall Street forecasts. The U.S. tech giant continued to benefit from optimism around artificial intelligence as it posted sales of $22.10 billion for its fiscal fourth quarter, up 265% year over year. Net income also increased by 769%.
The market valuation of the company has increased by more than $129 billion as a result of the late-day spike in the company’s shares. The favorable trend has also affected other AI-related companies, such as Arm Holdings, resulting in a cumulative rise in stock market value of $160 billion. Revenue for the fiscal year 2024 increased by 126% to $60.9 billion, while net income increased by 581 percent year over year to $29.76 billion.
“Generative AI and accelerated computing have reached a tipping point. Global demand is rising across businesses, sectors, and countries, according to Jensen Huang, the founder and CEO of Nvidia.
He added that 100 million gamers and producers use the Nvidia RTX, which was released less than six years ago, as a vast PC platform for generative AI (artificial intelligence).
Nvidia Stocks: Sales, Revenue Share
According to the report, several analysts doubt if Nvidia’s quick growth can be sustained, even while the company’s financial forecast remains positive. Revenue for the first quarter is expected to be $24.0 billion, give or take 2%; this is more than the $22.17 billion average analyst projection.
According to LSEG statistics, sales in its data center segment, which is the largest by revenue share, surpassed projections in the fiscal fourth quarter, rising by 409 percent to $18.4 billion. Concerns remain, nevertheless, over the company’s short-term capacity to satisfy the rapidly increasing demand for its chips.
After being stretched by excessive demand, Nvidia‘s supply networks are progressively becoming better. According to Reuters, analysts anticipate that supply limitations will be eased in the first half of the year by Taiwan Semiconductor Manufacturing Co. (TSMC) thanks to its increased packaging capacity.
Even with more stringent trade regulations, its earnings have increased. The company recently revealed that it has been the subject of antitrust inquiries into GPU sales and supply allocation from authorities in China, France, the United Kingdom, and the European Union.
The market is surging due to Nvidia’s strong sales forecast
The AI chip manufacturer Nvidia stoked the same enthusiasm for AI that propelled the previous year’s stock market surge by releasing a strong sales projection. According to a Bloomberg study, its share rise became a market driver. The upward trend also extended to index futures, as the Nasdaq 100 futures increased by more than 1%. It also stated that competitors Advanced Micro Devices Inc. and Intel Corp. saw increases.
Peers and suppliers throughout the world also saw rallies. Early trading in Seoul saw gains of 4.7 percent for SK Hynix Inc., a significant supplier of memory chips, and 6.3 percent for Advantest Corp., a Japanese company that makes chip testers.
Over the last 11 months, Nvidia has led the market. The market moves with it. The outcomes validate the belief that artificial intelligence will endure, as stated by Kim Forrest, Chief Investment Officer of Bokeh Capital Partners LLC, in a Bloomberg interview.
With a stock increase of more than thirty percent so far in 2024, it is now competing with Amazon and Alphabet for a place in the top five most valuable businesses.
FAQs…
When was Nvidia founded?
Established on April 5, 1993, with the goal of introducing 3D graphics to the multimedia and gaming industries by Jensen Huang, Chris Malachowsky, and Curtis Priem.
Where is Nvidia headquarters?
With its headquarters located in Santa Clara, California, and its incorporation date of Delaware, Nvidia Corporation is an American global corporation and technological company.
Why is NVIDIA so famous?
Graphic Card Driver
Graphics powered Nvidia’s business for many years; thirty years later, the company is still the world’s largest producer of discrete graphics cards because to its sales of gaming graphics cards, especially the GeForce serie
Who is the CEO of NVIDIA in India?
Since 2010, Vishal Dhupar has led NVIDIA’s business operations in South Asia as the company’s managing director.
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