Nvidia’s stock climbed nearly 8% after its quarterly outlook exceeded analysts’ estimates, along with its January-quarter revenue and profits
Nvidia added more than $129 billion in stock market value late on Wednesday after the chipmaker’s hotly anticipated quarterly report beat estimates and sparked gains in other AI hardware stocks.
Nvidia’s stock climbed nearly 8% after its quarterly outlook exceeded analysts’ estimates, along with its January-quarter revenue and profits.
Nvidia has been a top beneficiary of technology companies’ race to build AI into their products and services. This made the US firm’s outlook a major test of whether Wall Street’s AI-driven rally is likely to continue or potentially retreat.
Following Nvidia’s report, server component supplier Super Micro Computer climbed nearly 6%, while Nvidia rival Advanced Micro Devices added 3%.
Broadcom and Marvell Technology, two more chipmakers benefiting from the jump in AI computing, added more than 2% each in extended trade.
Arm Holding advanced around 6%, now up over 160% from the $51 price set in its initial public offering (IPO) in September.
Nvidia forecast current-quarter revenue of $24.0 billion, plus or minus 2%. That was well above the $22.17 billion forecasted by analysts, as per LSEG data.
The firm reported Q4 revenue of $22.10 billion, beating estimates of $20.62 billion and adjusted EPS of $5.16 vs. $4.64 expected by analysts. Net income soared 769% from a year ago to $12.285 billion.
Concerns that Nvidia’s quarterly report might not meet Wall Street’s high expectations in recent days knocked its stock down nearly 9% from record highs. Its late-day jump to $724 on Wednesday still leaves it short of its $739 record high close on February 14.
Including Wednesday’s after-hours gain, Nvidia’s stock has jumped more than 40% this year after more than tripling in 2023. In recent sessions, Nvidia has contended with Amazon.com and Alphabet for a spot as Wall Street’s third-most valuable company.
