Demand is rising globally for accelerated computing and generative AI.
US equities rallied on Thursday, with the S&P 500 rising 1.56% to a new record high, the Nasdaq up 2.34%, and the Dow Jones up almost 300 points after Nvidia’s earnings above expectations.
Nvidia shares rose more than 14.71% to $777 after the firm announced record sales and provided positive guidance despite strong demand, implying that the AI-fueled rise will continue.
Megacap stocks were also in the green, namely Microsoft (1.7%), Apple (0.4%), Amazon (2.3%), Meta (2%) and Alphabet (0.6%). Shares of Advanced Micro Devices (5.4%), Intel (0.6%), Qualcomm (1.7%) and Micron (3.8%) also gained sharply.
NVIDIA (NASDAQ: NVDA), a pioneer of GPU-accelerated computing has announced the financial results for the fourth quarter and fiscal 2024.
Nvidia sales reach new heights as the company forecasts a larger AI boom. Nvidia, a chip manufacturer, had joined the select group of businesses with a $1 trillion market capitalization and a market value of nearly 1.72 trillion dollars. The chip company at the center of the artificial intelligence mania has had a historic run and may soon cross the $2 trillion valuation.
“Nvidia’s remarkable stock performance can be attributed to the increasing demand for GPUs in AI and machine learning applications. Nvidia’s strategic positioning in this space positions it as a key player driving the AI revolution. The surge in its stock value reflects not only current market trends but also anticipation of sustained demand for its products as AI adoption continues to grow,” says Nigel Green, CEO, deVere Group.
“From February 23, 2023, to February 21, 2024, Nvidia’s shares have experienced an exponential increase of over 200%, rising from $230 to $725.00 after the post-market. This impressive growth has positioned Nvidia as the third-largest capitalized company in the world, surpassing tech giants like Amazon and Alphabet. With such solid performance and promising prospects, Nvidia continues to lead the way in the exciting world of technology and artificial intelligence, inspiring both its shareholders and the industry,” says Antonio Ernesto Di Giacomo, Market Analyst Latam at xs.com
The quarterly revenue of NVIDIA has reached a record $22.1 billion, up 22% from the previous quarter and 265% year on year. The Data Center quarterly revenue of $18.4 billion, is up 27% from Q3, up 409% from a year ago. The full-year revenue has achieved a record of $60.9 billion, up 126%.
“Nvidia has now taken over in weighting/market cap of Amazon and Google in the indexes. Companies do earn their weight in the indexes through price performance/movement, and the move this year so far has put them above those other two goliaths,” says Ken Mahoney, CEO at Mahoney Asset Management.
NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 27, 2024, to all shareholders of record on March 6, 2024.
“With a 90% monopolistic market share in the global AI chip space, Nvidia investors have every reason to be enthusiastic about the new FY, if not the next few FYs. At the time of writing this, the Nvidia counter was already popping by almost 15% in the premarket hours taking the stock tantalizingly close to the $2 trillion market cap turf.
The latest quarterly results make for some fine reading. Quarterly revenue and net profit figures have jumped by an incredible 265% and 769%. Ditto for annual revenue and net profit figures, which have surged by 126% and 581%. Which investor and market analyst wouldn’t welcome such meteoric growth?
Nvidia is going to be a bellwether for the AI space in the coming quarters given that competitors like AMD and Intel still appear to be lagging by a considerable distance. Granted that a lot of the value has already been priced in by the markets, Nvidia still holds massive potential, which will be evident from the AI implementation in the coming days,” says Yogesh Kansal, Co-founder & CMO, Appreciate.
NVIDIA’s revenue is expected to be $24.0 billion for the first quarter of fiscal 2025.
“Nvidia’s growth expectations continue to be impressive. The company projects its revenues to reach $24.000 billion and operating expenses to be approximately $3.500 billion. These projections are even more ambitious than the market initially expected, demonstrating the company’s confidence in its ability to continue leading the artificial intelligence and cutting-edge technology market,” adds Giacomo.
