Nvidia Stock Surges as Sales Forecast Delivers on AI Drive
Shares of Nvidia Corp., the chipmaker at the center of an artificial intelligence boom, surged on Thursday after a bullish sales forecast showed that AI computing spending remains strong.
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‘We are poised for our next wave of growth,’ CEO says
The shares rose as much as 10% to $1,047.27 on Thursday, adding roughly $240 billion to Nvidia’s valuation. That’s far more than the entire market capitalization of Intel Corp., a chipmaker that once dwarfed Nvidia by every measure. And Nvidia’s $28 billion in projected quarterly sales would be more than twice what Intel is expected to report.
Outlook for second-quarter revenue exceeds estimates
Second-quarter revenue will be about $28 billion, the company said Wednesday, topping the $26.8 billion predicted by analysts. Results in the fiscal first quarter, which ended April 28, also beat projections — lifted by growth in Nvidia’s data-center division.
The big question heading into the earnings report was whether Nvidia’s latest numbers could justify the dizzying run-up in its stock. The shares had gained 92% this year through Wednesday’s close, fueled by investor hopes that the company would continue to shatter expectations.
The report didn’t disappoint, and Chief Executive Officer Jensen Huang stoked the excitement by talking about the dawning of a new era. “This is the beginning of a new industrial revolution,” he said in an interview, echoing one of his favorite themes. “This is really exciting.”
