Nvidia CEO Jensen Huang delivers a keynote address throughout the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.Â
Justin Sullivan | Getty Images
Nvidia shares jumped greater than 9% on Thursday after the corporate on Wednesday reported earnings that topped Wall Street estimates and showed that there is still ferocious demand for its artificial intelligence chips. The corporate’s data center revenue grew by a whopping 427% throughout the quarter.
Shares closed above $1,000 for the primary time, reaching a high of $1,037.99. Its previous high of $953.86 was set on May 21.
First-quarter revenue got here in higher than expected at $26.04 billion compared with the LSEG estimate of $24.65 billion. And the demand is not wavering.
The corporate issued strong guidance, saying it expects $28 billion in revenue for the present quarter, beating the LSEG estimate of $26.61 billion.
Despite some analysts fearing an “air pocket,” others have grown much more bullish on the corporate since its results. Bernstein’s Stacy Rasgon increased the firm’s price goal to $1,300, writing in a note to investors that the narrative surrounding the corporate is “clearly nowhere near its end, or likely nowhere near its peak.” He wrote that shares seem inexpensive.
Jefferies raised its goal on the stock to $1,350 on account of a powerful ramp for its latest AI graphics processors called Blackwell and anticipation of an acceleration in “magnitude of beats” later this 12 months when the platform launches.
Nvidia posted net income of $14.88 billion, or $5.98 per share, a dramatic pop from the $2.04 billion, or 82 cents per share, it reported within the year-ago quarter.
Nvidia on Wednesday announced a 10-for-1 stock split, with shares set to start trading on a split-adjusted basis at market open on June 10.
