Nvidia's stock soars after AI boom lifts revenue 265%
Nvidia's fourth-quarter earnings beat Wall Street's expectations, thanks to generative AI
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Penn Mutual Asset Management President and CIO Mark Heppenstall analyzes latest Fed minutes, Nvidia stock and the AI boom.
Nvidia shares soared after the artificial intelligence powerhouse announced a massive jump in quarterly revenue from a year ago, reassuring investors that its AI edge is alive and well.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 145.89 | -1.12 | -0.76% |
Shares, which sold off ahead of the results, hit an all-time high of $774.20 per share, adding to the 225% gain over the past 52 weeks and the 36% rise for this year alone.
Nvidia's revenue in the fourth quarter, which ended on Jan. 28, was up 265% from a year ago and 22% from the prior quarter and totaled $22.1 billion, beating analysts' estimates of $20.6 billion. For fiscal year 2024, Nvidia's revenue rose 126% to $60.9 billion.
"Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations," said Nvidia founder and CEO Jensen Huang. Huang pointed to Nvidia's clout in data centers that power generative AI tools and in designing advanced graphics processing units (GPUs) as an ongoing source of strength.
"Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies," Huang said. "Vertical industries — led by auto, financial services and health care — are now at a multibillion-dollar level."
Nvidia
Nvidia's quarterly net income increased 33% from the prior quarter and 769% year-over-year. For fiscal year 2024, its net income was up 581% from the prior year with diluted earnings per share up 586%.
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Nvidia's fourth-quarter earnings beat Wall Street's expectations, thanks to the generative AI boom. (Ahmet Serdar Eser/Anadolu via Getty Images / Getty Images)
Huang hinted that the company will have more news to share on its RTX GPUs in the near future.
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Nvidia CEO and founder Jensen Huang said that the company's data center business is diversifying its customer base. (Sam Yeh/AFP via Getty Images / Getty Images)
"Nvidia RTX, introduced less than six years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators. The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward," Huang explained. "Come join us at next month's GTC [GPU Technology Conference], where we and our rich ecosystem will reveal the exciting future ahead."
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*This story has been updated to reflect Thursday's trading.