The semiconductor giant, Nvidia (NASDAQ: NVDA) shares have experienced an enormous rebound in 2023. The stock skyrocketed almost 150% in 2023. The company's market cap is now $950 billion, making it the sixth most valuable company in the world.
The chipmaker stock extended the rally after the first-quarter earnings results and jumped more than 28% in pre-market trading on Thursday. The company posted better-than-expected Q1 results for its fiscal 2024, beating analysts' expectations on revenue and earnings. As of this writing, the stock hit a new all-time high of $385.
Earnings per share: $1.09 vs. $0.92 expected
Revenue: $7.19 billion vs. $6.52 billion expected
The strong financail results are supported by booming demand for artificial intelligence processors. The company reported revenue of $7.19 billion, up by 19% from the previous quarter but on a year-over-year basis, revenue was down 13%. The data center unit, which accounts for more than half of the company's revenues, grew 14% year-over-year with $4.28 billion. Looking into the current quarter, Nvidia sees revenue of around $11 billion, plus or minus 2%, compared with the Wall Street consensus of $7.15 billion.
“The computer industry is going through two simultaneous transitions—accelerated computing and generative AI,” said Jensen Huang, founder, and CEO of Nvidia. “A trillion dollars of installed global data center infrastructure will shift from general purpose to accelerated computing, as companies rush to apply generative AI to every product, service and business process,” he added.
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