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Nvidia shares close at record high after forecast signals unwavering demand for AI chips

Nvidia’s stock surged over 9% on Thursday after exceeding Wall Street expectations and demonstrating strong demand for its AI chips. The company’s data center revenue increased by a remarkable 427% during the quarter.

Shares closed above $1,000 for the first time, with a high of $1,037.99. The previous high of $953.86 was established on May 21.

Revenue in the first quarter exceeded expectations, totaling $26.04 billion, compared to the LSEG projection of $24.65 billion. And the demand remains stable.

The company provided solid guidance, forecasting $28 billion in revenue for the current quarter, exceeding the LSEG estimate of $26.61 billion.

Despite some analysts’ concerns about a “air pocket,” others have become even more positive on the company following its findings. Bernstein’s Stacy Rasgon raised the firm’s price target to $1,300, noting in a note to investors that the company’s story is “clearly nowhere near its end, or likely nowhere near its peak.” He noted that the shares appear to be affordable.

Jefferies boosted its price objective for the company to $1,350, citing a good ramp for its new AI graphics processors, Blackwell, and expectations of an acceleration in “magnitude of beats” later this year when the platform opens.

Nvidia reported net income of $14.88 billion, or $5.98 per share, a significant increase from the $2.04 billion, or 82 cents per share, reported in the prior quarter.

On Wednesday, Nvidia announced a 10-for-1 stock split, with shares expected to begin trading on a split-adjusted basis at market open on June 10.





































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