Nvidia experienced a momentous surge in market capitalization, briefly eclipsing the $2 trillion mark during Friday’s intraday trading session, propelled by the company’s optimistic earnings report released on Wednesday.
However, this pinnacle was fleeting. Despite an initial uptick earlier in the day, Nvidia shares witnessed a slight decline of approximately 1% by 11 a.m. ET. Nonetheless, Nvidia’s stock concluded Thursday with a notable 16% increase.
For its fiscal fourth quarter, Nvidia reported a staggering $22.10 billion in revenue, marking a remarkable 265% surge from the previous year. This figure surpassed analysts’ expectations, which were pegged at $20.62 billion, according to a survey conducted by LSEG, formerly known as Refinitiv.
In terms of net income, Nvidia reported an impressive $12.29 billion for the quarter, signifying a remarkable 769% surge from $1.41 billion in the corresponding period last year. The company has reaped substantial benefits from the tech sector’s insatiable appetite for artificial intelligence capabilities over the past year.
Nvidia specializes in manufacturing high-performance graphics processors tailored for the servers that fuel extensive AI models. Expressing optimism about Nvidia’s trajectory, Jessica Inskip of OptionPlay remarked, “Nvidia is clearly in a bullish trading cycle.”
Looking ahead, Nvidia foresees robust performance, with an anticipated $24.0 billion in sales for the current quarter, surpassing analysts’ expectations set at $22.17 billion. “Favorable conditions lay the groundwork for sustained growth,” affirmed Nvidia CEO Jensen Huang during the company’s quarterly conference call with investors on Wednesday.
