Nvidia President Jensen Huang holds a Grace Hopper Superchip CPU used for generative AI during the Supermicro keynote at Computex 2023.
Walid Belazeg | Light Rocket | Getty Images
Nvidia stock soared more than 12% in pre-market trading Thursday after the semiconductor giant announced big profits that beat Wall Street expectations.
The US tech giant posted revenue of $22.1 billion in its fourth quarter fiscal year, a 265% year-over-year increase, and net income increased 769%. This is because the company continues to be fueled by excitement about artificial intelligence.
Nvidia chips are used to train huge AI models, like those developed by Microsoft and Meta.
Nvidia shows no signs of slowing down. The company expects sales to reach $24 billion this quarter, well above expectations.
Nvidia CEO Jensen Huang told analysts on Wednesday that “we fundamentally have great conditions for continued growth” beyond 2025, adding that he is bullish on the stock. Increased sentiment.
Nvidia’s data center business, which includes the company’s H100 graphics cards used for AI training, posted revenue of $18.4 billion in the fourth quarter, a 409% year-over-year growth.
Nvidia’s positive outlook led to a series of broker upgrades on Thursday. JPMorgan raised its price target on Nvidia stock from $650 to $850, and Bank of America Global Research raised its price target from $800 to $925.
Nvidia stock closed Thursday at $674.72. Shares were under pressure ahead of the earnings report as traders booked profits and investors worried that Nvidia would not meet its lofty expectations.
But market-beating numbers dispelled those concerns and lifted other global semiconductor stocks as well.
