Amid AI growth, Nvidia’s share price hikes 30% in Q1 earnings report
Nvidia share price recorded a boost in its stock market value by nearly $200 billion to over 950 billion.
Highlights
- Nvidia is one of most valuable companies listed on on the Wall Street
- The chipmaker projects to grow by $11 billion in coming months
- It focuses on growing data centre infrastructure to support computing
Nvidia Corp., an American multinational technology company, known for its manufacturing and designing of GPUs, has recently revealed its first quarter earnings for fiscal 2024 to be around $7.2 billion, exceeding analyst expectations by a remarkable $0.7 billion. The sharp rise in price of its share has been witnessed above 28 percent after the bell hit a record high of $391.50 yesterday.
The stock’s worth increased by around $200 billion to over $950 billion as a result of the share price surge, maintaining its position as the fifth most valuable company on the Wall Street list.
Nvidia to make $11 billion in revenue in coming months
According to Nvidia, the company has forecasted to make nearly $11 billion in revenue during the three months, ending in July.
In order to keep up with the soaring demand for its artificial intelligence chips, which run ChatGPT and numerous other related services, the company has further announced to focus on increasing its supplies of GPUs.
In contrast to analysts' expectations of $6.52 billion in revenue for the quarter that ended on 30 April 2023, the company's adjusted revenue was $7.19 billion. The net income increased from $1.62 billion (or 64 cents per share) a year earlier to $2.04 billion (or 82 cents per share).
Focus will be given to data centre infrastructure
“We’re seeing incredible orders to retool the world’s data centres," Chief Executive Officer and co-founder, Jensen Huang, told analysts on a conference call. He continued to say, "A trillion dollars' worth of data centre infrastructure will be upgraded to support so-called accelerated computing, enabling them to run ChatGPT and other generative AI tools."
According to a report from Zacks Research Daily, a stocks analysis firm, Nvidia shares have surpassed the stocks of other companies in the major indexes it trades on this year, and as of Wednesday's closing, the company's market worth had risen to $755 billion. By this standard, the American chipmaker is reportedly six times the size of Intel Corp, a semiconductor computer circuits manufacturer.
