TAIPEI, TAIWAN – Nvidia shares surged by over 12% in premarket trade on Thursday following the release of their robust earnings report. The U.S. tech giant reported a staggering revenue of $22.10 billion for its fiscal fourth quarter, representing a 265% year-on-year increase, with net income soaring by 769%. The company’s strong performance is attributed to the growing excitement over artificial intelligence, which continues to drive demand for Nvidia’s chips used in training massive AI models developed by big tech companies like Microsoft and Meta.
For the current quarter, Nvidia is projecting revenue to hit $24 billion, far exceeding analysts’ estimates. The company’s CEO, Jensen Huang, expressed confidence in sustained growth for 2025 and beyond, contributing to the bullish sentiment surrounding Nvidia’s stock. In the fourth quarter, Nvidia’s Data Center business, including its H100 graphics cards used for AI training, achieved sales of $18.4 billion, marking a remarkable 409% year-on-year growth.
As a result of the positive outlook, several brokerage firms raised their price targets for Nvidia’s stock, with JPMorgan now setting theirs at $850 and Bank of America Global Research at $925. This impressive performance not only dispelled fears of Nvidia missing expectations but also lifted other global chip stocks higher.
The market’s response to Nvidia’s earnings report underscores the company’s dominant position in the chip industry and its pivotal role in the artificial intelligence landscape. The continued demand for Nvidia’s chips reflects the rapidly evolving technology landscape and the increasing reliance on AI across various sectors, from data centers to consumer electronics. Overall, Nvidia’s strong performance and optimistic outlook signal a promising trajectory for the company and the broader semiconductor industry.