Nvidias AI-Driven Earnings Report Boosts Stock by 25%

Nvidias AI-Driven Earnings Report Boosts Stock by 25%


Semiconductor giant Nvidia’s stock is skyrocketing thanks to the surge in demand for AI chips, with the company’s shares up 166% since the beginning of 2023 and a record $11 billion in revenue for the first quarter.

Semiconductor giant Nvidia is getting a big boost from the present wave of artificial intelligence (AI) hype. In doing so, company stock is skyrocketing.

Artificial intelligence-related stocks have been increased by an notice from Nvidia that it was increasing production of its Artificial Intelligence (AI) chips to meet surging demand.

Nvidia Flying High on AI

Since the emergence of ChatGPT, tech corporations have been riding the wave of hype to get in on the latest big thing in technology.

On May 24, Nvidia released its earnings report. This increased its stock market  price by about $200 Billion to over $960 billion. The company informed a record $11 Billion in revenue for the 1st quarter.

Nvidia shares (NVDA) surged around 30 percent in after-hours trading to reach an record-breaking peak of $394. Furthermore, Nvidia shares are up a whopping 166 percent since the beginning of 2023.

Furthermore, the big stock move extended the company’s lead as the world’s most valuable chipmaker and Wall Street’s fifth-most valuable company, informed Reuters.

Chief Financial Officer Colette Kress stated that generative Artificial Intelligence (AI) was at an “inflection point” as OpenAI’s ChatGPT has just had its “iPhone moment” for the industry. She added:

“It’s put us in a spotlight that we understood would happen. On the other hand, it’s just very difficult to determine when that possibility would be there. On the other hand, it is here, this inflection is here, the inflection on Artificial Intelligence (AI) and the inflection on Artificial Intelligence (AI) and accelerated computing.”

Daniel Morgan, a senior portfolio manager at Synovus Trust, commented:

“With all the enthusiasm around Artificial Intelligence (AI) and the fact Nvidia delivered a huge beat for first-quarter results and second-quarter estimates, this gives some actual evidence Artificial Intelligence (AI) is for real.”

In March, Nvidia unveiled new chips that it stated would boost the computing speed of increasingly complicated artificial intelligence algorithms. The H100 chip and a new processor was known the Grace CPU Superchip will be the core of Artificial Intelligence (AI) infrastructure, reports by Nvidia.

Tech Stock Revival

Rival chipmaker Advanced Micro Devices (AMD) likewise saw a increase in stock prices. AMD shares jumped 10 percent on the day to trade at $117.12 after-hours. The company stock has gained 83 percent since the beginning of the year.

Other corporations racing to get into Artificial Intelligence (AI) have likewise seen profits in share prices. Microsoft (MSFT) and Alphabet (GOOG) both gained a couple of % in after-hours trading.

Source

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