Nvidia CEO Jensen Huang gave a speech at the Nvidia GTC Artificial Intelligence Conference in California, boosting the company’s shares by over 10% following a strong earnings report that beat Wall Street estimates. The report showcased the ongoing demand for Nvidia’s artificial intelligence chips, with data center income increasing by a staggering 427% in the quarter. First-quarter revenue exceeded expectations at $26.04 billion, and the company provided a strong forecast of $28 billion in revenue for the next quarter, surpassing estimates. This resulted in shares surpassing $1,000 for the first time, reaching an all-time high of $1,051.96 during trading. Despite concerns from some analysts about a potential slowdown, others remain optimistic about Nvidia’s future trajectory.
Analyst Stacy Rasgon from Bernstein raised the company’s price target to $1,300, emphasizing that Nvidia’s growth narrative is far from over and that the stock still presents good value. Jefferies also increased their target to $1,350 due to the promising performance of Nvidia’s new AI graphics processors and anticipation for future product launches. Nvidia reported a significant rise in net income to $14.88 billion, or $5.98 per share, compared to $2.04 billion, or 82 cents per share, in the previous year’s quarter.
In a strategic move, Nvidia announced a 10-for-1 stock split, with the split-adjusted shares set to begin trading on June 10. This decision aims to make the stock more accessible to a wider range of investors and potentially attract more interest in the company.
Overall, Nvidia’s impressive financial results, strong guidance, and innovative product offerings have propelled the company to new heights, with shares seeing substantial gains and reaching record levels. The positive outlook from analysts and the company’s strategic initiatives suggest continued growth and potential for further expansion in the future. The market response to Nvidia’s recent developments indicates confidence in the company’s ability to maintain its position as a leading player in the technology industry, particularly in artificial intelligence and data center markets.
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https://www.cnbc.com/2024/05/23/nvidia-stock-pops-10percent-to-record-high.html
