NVIDIA’s shares soared by 15% to close at $674.72 on Thursday, following the announcement of its fiscal fourth-quarter earnings, which significantly exceeded Wall Street forecasts. The company experienced a remarkable 265% increase in revenue to $22.10 billion, and net income rose by 769%, largely driven by the burgeoning demand for artificial intelligence. NVIDIA, renowned for its chips that power AI models for giants like Microsoft and Meta, projects its revenue to reach $24 billion in the current quarter, surpassing expectations.
“Fundamentally, the conditions are excellent for continued growth” in 2025 and beyond, said NVIDIA CEO Jensen Huang, bolstering the optimistic outlook for the stock during his Wednesday conversation with analysts.
The Data Center segment, featuring NVIDIA’s H100 graphics cards crucial for AI training, reported a staggering 409% growth in sales, totaling $18.4 billion for the quarter. This optimistic performance led to broker upgrades, with JPMorgan adjusting its price target from $650 to $850 and Bank of America Global Research from $800 to $925. The stock’s prior pressure from profit-taking and concerns over meeting high expectations was quickly overshadowed by NVIDIA’s strong results and future outlook.
