Nvidia stock surges after results, lifts other AI shares
Reuters
Published Feb 21, 2024 18:12
(Reuters) - Nvidia added over $129 billion in stock market value late on Wednesday after the chipmaker's hotly anticipated quarterly report beat estimates and sparked gains in other AI hardware stocks.
Nvidia's stock jumped almost 8% after its quarterly outlook exceeded analysts' estimates, along with its January-quarter revenue and profits.
Nvidia has been a top beneficiary of technology companies' race to build artificial intelligence into their products and services. This made the Santa Clara, California company's outlook a major test of whether Wall Street's AI-fueled rally is likely to continue or potentially reverse.
Following Nvidia's report, server component supplier Super Micro Computer jumped almost 6%, while Nvidia rival Advanced Micro Devices (NASDAQ:AMD) rose 3%.
Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL), two more chipmakers benefiting from the surge in AI computing, rose over 2% each in extended trade.
Arm Holding added nearly 6%, now up more than 160% from the $51 price set in its initial public offering in September.
Nvidia forecast current-quarter revenue of $24.0 billion, plus or minus 2%. That was well above the $22.17 billion predicted by analysts, according to LSEG data.
The company reported fourth-quarter revenue of $22.10 billion, beating estimates of $20.62 billion and adjusted EPS of $5.16 vs $4.64 expected by analysts. Net income surged 769% from a year ago to $12.285 billion.
Worries that Nvidia's quarterly report might not meet Wall Street's high expectations in recent days knocked its stock down almost 9% from record highs. Its late-day surge to $724 on Wednesday still leaves its short of its $739 record high close on Feb. 14.
Including Wednesday's after-hours gain, Nvidia's stock has climbed over 40% in 2024 after more than tripling last year. In recent sessions, Nvidia has jockeyed with Amazon.com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) for a spot as Wall Street's third-most valuable company.
Nvidia has also recently replaced Tesla (NASDAQ:TSLA) as Wall Street's most traded stock by value.
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Written By: Reuters
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