Nvidia’s shares surged 16% following its strong earnings report in Q4, driven by the growing demand for artificial intelligence, surpassing Wall Street’s expectations, CNBC reports.
Nvidia reported a revenue of $22.10 billion for its fiscal fourth quarter, a significant increase of 265% year-over-year, with net income soaring by 769%. The company remains optimistic about its future growth, forecasting revenue of $24 billion for the current quarter, well above estimates.
Nvidia’s chips are essential for training large AI models used by companies like Microsoft and Meta. Nvidia’s Data Center business, particularly sales of its H100 graphics cards for AI training, experienced substantial growth.
The positive outlook prompted several broker upgrades, with JPMorgan and Bank of America raising their price targets on Nvidia’s stock. Despite concerns prior to the earnings report, Nvidia’s impressive performance reassured investors and contributed to a rise in other chip stocks as well.
