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Tech giant Nvidia soars after strong earnings report

Tech giant dramatically revitalizes stock market’s sluggish sentiment NVIDIA (United States: NVDA) It surged on Thursday, with NVDA posting a massive 24.37% gain on the open market. Fueling this extreme momentum was an outstanding earnings performance, along with strong expectations for the burgeoning artificial intelligence market.

NVDA shares are up more than 172% year-to-date heading into the upcoming four-day trading week, and are getting closer and closer to all-time highs. $1 trillion market capitalization. 7 consecutive quarters Management announced a cash dividend 4 cents per share, ex-rights date June 7.

According to Nvidia’s press release, Q1 FY2024 (ending April 30), management reported revenue of $7.19 billion, down 13% year over year but up 19% from the prior (following) quarter. Most importantly, the latest sales are significantly higher than past sales. Consensus forecast is $6.52 billionper CNBCcited data from Refinitiv.

Revenue growth decreased 13% year-over-year, but increased quarter-on-quarter and exceeded expectations thanks to record data center revenue.

Ultimately, GAAP diluted earnings per share were 82 cents, up 28% year-over-year and up 44% sequentially. Non-GAAP adjusted earnings per share were $1.09, beating Refinitiv’s consensus forecast of 92 cents.

“The computer industry is going through two simultaneous transitions: accelerated computing and generative AI,” said Nvidia founder and CEO Jensen Huang in part. “As companies race to apply generative AI to every product, service, and business process, he said the trillion-dollar global data center infrastructure being deployed will move from general-purpose to accelerated computing. Let’s go,” he added.

AI fertile soil

The tech specialist stands on fertile ground, with Nvidia’s graphics processing units (GPUs) powering the latest innovations in the broader digital movement. According to Grand View Research, the global generative AI market alone $109.37 billion valuation by 2030. If so, such expansion equates to a compound annual growth rate of 35.6% from 2023 to 2030.

One of the highlights of the Q1 2024 disclosure was the introduction of Nvidia AI Foundations, whose purpose is to “provide companies with custom large-scale language models and training models trained on their own data for domain-specific tasks. to help create and operate generative AI models.”

ARK Invest wrote on Friday:Looking ahead, in a memo about NVDA shares, her team said, “Exploding demand for AI hardware puts us in a strong position to leverage unique data/distribution advantages and deploy AI use cases across our product line. We anticipate accelerated revenue growth for software companies located in big move.

Nvidia’s management expects future sales to be $11 billion, plus or minus 2%. Additionally, GAAP and non-GAAP gross margins are expected to reach 68.6% and 70%, plus or minus 50 basis points, respectively.

Further building on these expectations, ARK Invest said its earnings call’s “headline” second-quarter revenue guidance of $11 billion was “significantly higher than the consensus estimate of $7.11 billion, representing 63% year-on-year growth.” It shows that,” he said.

Derivative leap

Not surprisingly, traders turn to derivatives boards in the wake of unpaid earnings reports.Market participants piled up the options arena in multiple trades during May 25 trading, according to Fintel shares. Optional flow screener.

So far this year, NVDA shares have surged more than 165%. Nonetheless, Wall Street analysts are doubling down on the tech giant. Currently, the data from Barons indicates that Average target price reaches $421.21. Additionally, the most optimistic projections see NVDA hitting a staggering $600 per share for him.

This story was originally Fintel.

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
Tech giant dramatically revitalizes stock market’s sluggish sentiment NVIDIA (United States: NVDA) It surged on Thursday, with NVDA posting a massive 24.37% gain on the open market. Fueling this extreme momentum was an outstanding earnings performance, along with strong expectations for the burgeoning artificial intelligence market.NVDA shares are up more than 172% year-to-date heading into the upcoming four-day trading week, and are getting closer and closer to all-time highs. $1 trillion market capitalization. 7 consecutive quarters Management announced a cash dividend 4 cents per share, ex-rights date June 7.

According to Nvidia’s press release, Q1 FY2024 (ending April 30), management reported revenue of $7.19 billion, down 13% year over year but up 19% from the prior (following) quarter. Most importantly, the latest sales are significantly higher than past sales. Consensus forecast is $6.52 billionper CNBCcited data from Refinitiv.Revenue growth decreased 13% year-over-year, but increased quarter-on-quarter and exceeded expectations thanks to record data center revenue.Ultimately, GAAP diluted earnings per share were 82 cents, up 28% year-over-year and up 44% sequentially. Non-GAAP adjusted earnings per share were $1.09, beating Refinitiv’s consensus forecast of 92 cents.“The computer industry is going through two simultaneous transitions: accelerated computing and generative AI,” said Nvidia founder and CEO Jensen Huang in part. “As companies race to apply generative AI to every product, service, and business process, he said the trillion-dollar global data center infrastructure being deployed will move from general-purpose to accelerated computing. Let’s go,” he added.AI fertile soilThe tech specialist stands on fertile ground, with Nvidia’s graphics processing units (GPUs) powering the latest innovations in the broader digital movement. According to Grand View Research, the global generative AI market alone $109.37 billion valuation by 2030. If so, such expansion equates to a compound annual growth rate of 35.6% from 2023 to 2030.

One of the highlights of the Q1 2024 disclosure was the introduction of Nvidia AI Foundations, whose purpose is to “provide companies with custom large-scale language models and training models trained on their own data for domain-specific tasks. to help create and operate generative AI models.”ARK Invest wrote on Friday:Looking ahead, in a memo about NVDA shares, her team said, “Exploding demand for AI hardware puts us in a strong position to leverage unique data/distribution advantages and deploy AI use cases across our product line. We anticipate accelerated revenue growth for software companies located in big move. Nvidia’s management expects future sales to be $11 billion, plus or minus 2%. Additionally, GAAP and non-GAAP gross margins are expected to reach 68.6% and 70%, plus or minus 50 basis points, respectively.Further building on these expectations, ARK Invest said its earnings call’s “headline” second-quarter revenue guidance of $11 billion was “significantly higher than the consensus estimate of $7.11 billion, representing 63% year-on-year growth.” It shows that,” he said.Derivative leapNot surprisingly, traders turn to derivatives boards in the wake of unpaid earnings reports.Market participants piled up the options arena in multiple trades during May 25 trading, according to Fintel shares. Optional flow screener.

So far this year, NVDA shares have surged more than 165%. Nonetheless, Wall Street analysts are doubling down on the tech giant. Currently, the data from Barons indicates that Average target price reaches $421.21. Additionally, the most optimistic projections see NVDA hitting a staggering $600 per share for him.This story was originally Fintel.

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/tech-giant-nvidia-skyrockets-off-a-strong-earnings-report Tech giant Nvidia soars after strong earnings report

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