AI drives 23.9% rise in NVIDIA shares
A stronger-than-expected forecast and a Q1 earnings beat helped gaming chip specialist NVIDIA lead the gainers all-sessions on the IG platform.
It reported adjusted earnings per share of $1.09 versus $0.92 expected, on revenues of $7.19 billion, far higher than the $6.52 billion forecast.
However, as IGTV’s Jeremy Naylor explains it was all about its artificial intelligence business. AI investments will keep NVIDIA ahead of its semiconductor rivals, according to the company.
NVIDIA said it expected about $11 billion in the current quarter, plus or minus 2%, far surpassing forecasts of $1.06 per share on $7.15 billion in sales.
(Video Transcript)
NVIDIA earnings beat
It's been a massive beat for the gaming chip company, NVIDIA in its first quarter accompanied by a stronger than expected forecast as well. Seeing a big rise in its stock as of the close last night, it reported adjusted EPS of $1.09 versus 92 cents expected on revenues of $7.19 billion, far higher than the $6.5 billion expected.
But it's really all about artificial intelligence (AI). AI investments will keep NVIDIA ahead of its semiconductor rivals according to the company. NVIDIA said it expected around about $11 billion plus or minus 2% in the current quarter, surpassing initial forecasts $1 per share on $7.15 billion in sales. So everything looks very impressive and indeed, if you look at what's been happening with the stock, absolute massive upside yesterday in shares.
NVIDIA stock has more than doubled already in the year. You can see 126% up from this vertical dotted line, which is where we started out the year all the way down at that point where we were at $140 the high point there $319. Yesterday closing out at $380.65. If we take that all the way up there, 180% now we've seen from the lows at the beginning of the year to the very high point we saw yesterday. This is an absolutely amazing transformation, mostly driven by optimism stemming from the company's leading position in the market for AI chips.
It says it's seeing surging demand for its data set of products which reported $4.28 billion in sales versus expectations of $3.9 billion, a 14% annual increase.
And NVIDIA's strong performance in data centre shows that AI chips are becoming increasingly important for cloud providers and other companies that run large amounts of service.
AMD
Just a quick tour around some of the other stocks worth watching. AMD yesterday, all-sessions on the IG platform, likewise saw a relatively strong day yesterday. It's up 8.44% and indeed closing at levels they've not seen since the 31st of March 2022.
Parent technology is also heavily involved in developing AI, it is rising nearly 4%. So gains across the board on from NVIDIA's news out late last night on first quarter earnings and the forecast.
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