Nvidia (NASDAQ:NVDA) saw a significant jump of over 14% in pre-market trading on Thursday, driven by the chip giant’s impressive earnings that surpassed Wall Street’s expectations. The surge in stock value is largely attributed to the company’s success in the field of artificial intelligence (AI).
For its fiscal fourth quarter, Nvidia reported revenue of $22.10 billion, marking a remarkable 265% increase compared to the previous year. Net income also saw a substantial surge of 769%.
Nvidia’s chips play a crucial role in training large AI models, including those developed by tech giants like Microsoft and Meta.
The positive momentum for Nvidia shows no signs of slowing down. The company has forecasted its revenue for the current quarter to reach $24 billion, significantly surpassing analysts’ estimates.
Nvidia CEO Jensen Huang expressed confidence in the company’s future growth prospects, stating, “Fundamentally, the conditions are excellent for continued growth in 2025 and beyond.” This optimistic outlook has further fueled bullish sentiment around Nvidia’s stock.
In the fourth quarter, Nvidia’s Data Center business, which includes the H100 graphics cards used for AI training, reported sales of $18.4 billion, reflecting a staggering 409% year-on-year growth.
The upbeat forecast from Nvidia has prompted several brokers to upgrade their ratings for the company. JPMorgan raised its price target on Nvidia’s stock from $650 to $850, while Bank of America Global Research increased its target from $800 to $925.
Nvidia’s stock closed at $674.72 on Thursday. Leading up to the earnings report, there were concerns among traders and investors that Nvidia might not meet expectations, leading to some pressure on the stock. However, the company’s strong performance has dispelled those fears and has also had a positive impact on other global chip stocks.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
