Nvidia Stock Earnings: NVDA market cap rises nearly $190 billion as AI chips boost revenue guidance


Share:
  • Nvidia clobbers Q1 expectations with a large revenue beat.
  • Nvidia raises guidance for Q2 about $4 billion above prior consensus.
  • Nvidia stock soars to a new all-time high above $375.
  • NVDA stock adds approximately $173 billion in market cap.

Nvidia (NVDA) stock soared 25% afterhours on Wednesday after the top maker of GPU chips used in artificial intelligence-based large language models (LLMs) like ChatGPT raised its guidance for revenue in the second quarter by nearly $4 billion or 55%. NVDA stock rose from a price of $105.38 to close the post-market session at a new all-time high of $381.08. This boosted its market cap form $755 billion to $944 billion.

The graphics card maker reported fiscal first-quarter revenue of $7.2 billion, whereas Wall Street had expected the past year's semiconductor pullback to lead to just $6.5 billion in sales. The revenue beat was nearly 11% better than expectations but still down from the $8.3 billion mark seen in the same quarter one year ago.

The NASDAQ lost 0.6% in Wednesday's regular session as markets worried about the lack of movement on debt ceiling debates, while the S&P 500 and Dow lost more than 0.7%. Much-watched Snowflake also reported moribund results that sent its stock down more than 12%. Nvidia's enthusiastic results can completely rewrite the market narrative for the rest of the week. Competitors like Advanced Micro Devices (AMD) also saw their post-market share prices skyrocket.

Nvidia earnings news: NVDA adds $189 billion to market cap with major revenue, earnings beat

Nvidia also reported a major earnings beat in the quarter. Adjusted earnings per share of $1.09 beat analyst consensus by 18.5%. Operating income rose 37% from the most recent quarter, and net income rose 25% simultaneously.

Nvidia's always-animated CEO and founder, Jensen Huang, was in prime condition. From his statements, it is clear why the market is eating up his every word. The market only seems to care about artificial intelligence and generative AI, and Nvidia is the picks-and-shovels approach to investing in the space. Nearly all the most sought-after chips for the supposed AI revolution are in the hands of Nvidia.

“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process," Huang said on the earnings call. “Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them."

Speaking of data centers, that segment turned in sales of $4.3 billion in Q1, 14% above the previous year's results. This is significant because Nvidia saw a general deterioration in its data center business over the past year, which analysts remarked upon at the time. Those rainy days appear to be over now.

Additionally, another hard-hit segment – gaming – produced another turnaround. Gaming revenue of $2.24 billion rose 22% over the most recent quarter as distributors began to restock their shelves.

The Professional Visualization segment saw sales rise 31% QoQ, while Automotive revenue surged 114% YoY. The entire quarter was phenomenal, and Nvidia added approximately $189 billion in market cap during the after-hours trade.

Things got really wild when Nvidia guided for $11 billion in sales during the current quarter, which is the second fiscal quarter ending in July. Before the earnings call, Wall Street had been expecting $7.1 billion. Nearly $4 billion appears to have entered the picture in the last 90 days. 

Nvidia stock forecast

Nvidia has reached a new all-time high. Shares rose about 23% after hours to $375, far higher than the previous all-time high of $246.47 in November 2021. The Relative Strength Index (RSI) is now strongly overbought, and the stock needs to simmer down. However, this excitement is palpable. These earnings alone will likely spur a broad market reversal higher on Thursday.

NVDA weekly chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD keeps range near 1.0850 after EU Sentix data

EUR/USD keeps range near 1.0850 after EU Sentix data

EUR/USD is keeping its upbeat momentum intact near 1.0850 after the Eurozone Sentix Investor Confidence improved to -10.5 in March. The US Dollar is struggling, as traders stay cautious ahead of a big week, with the ECB rate decision and Powell's testimony in focus. 

EUR/USD News

GBP/USD clings to gains below 1.2700 as US Dollar struggles

GBP/USD clings to gains below 1.2700 as US Dollar struggles

GBP/USD is holding gains below 1.2700 in the European trading hours on Monday. A subdued US Dollar combined with an improvement in market sentiment keeps the pair afloat amid a data-light calendar on both sides of the Atlantic. 

GBP/USD News

Gold price stands tall near two-month top, eyes $2,100 amid rising June Fed rate cut bets

Gold price stands tall near two-month top, eyes $2,100 amid rising June Fed rate cut bets

Gold price (XAU/USD) attracts some buyers for the fourth successive day on Monday and trades near its highest level since December 28 touched on Friday. 

Gold News

XRP price hits new yearly high at $0.65, attorney says Ripple’s influence on XRP is decelerating

XRP price hits new yearly high at $0.65, attorney says Ripple’s influence on XRP is decelerating

XRP price climbed to a new 2024 high of $0.65 on Saturday and suffered a minor pullback to $0.63, early on Monday. The altcoin has sustained above the psychologically important level of $0.60 amidst developments in the SEC v. Ripple lawsuit.

Read more

A week packed with data and decisions

A week packed with data and decisions

In the US, the week will be packed with jobs data and Fed Chair Powell’s congressional testimony. The US economy is expected to have added around 190K new nonfarm jobs, the unemployment rate is seen steady near 3.7%. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures