Nvidia Surpasses $2 Trillion in Market Cap: Earnings Report Sparks Investor Frenzy

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.

Nvidia's market cap briefly exceeds $2 trillion
Nvidia’s market cap briefly exceeds $2 trillion, driven by robust earnings report. (Credits: Google Finance)

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.

Fiscal Q4 revenue soars to $22.10 billion
Fiscal Q4 revenue soars to $22.10 billion, surpassing analysts’ expectations.

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.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x