Nvidia, a semiconductor company, delivered better-than-expected earnings for the quarter and their success has sparked a rally in artificial intelligence (AI) stocks. After an impressive outlook for the next quarter, Nvidia’s stock rose 25% in premarket trading, and many other AI related stocks increased as well. C3.ai, Palantir, and Arista Networks all saw in hikes in premarket trading, while Microsoft and Alphabet were both up slightly. Nvidia’s rival chip makers AMD and Micron Technology also saw an increase of 8.5% and 4.5% respectively.
Nvidia reported earnings per share of $1.09 in the first quarter, exceeding the analysts’ estimate of 92 cents-per-share, and exceeding the revenue expectations of $6.5 billion with sales of $7.2 billion. Describing the ongoing transition of the chip maker, Jensen Huang, CEO of Nvidia, declared in a statement that the industry is experiencing “accelerated computing and generative AI”. This innovation, combined with the “surging demand” for their products, is expected to help Nvidia grow revenue by an estimated $11 billion in the coming quarter.
Nvidia has been at the forefront of Artificial Intelligence since it developed its first neural networks AI platform in 2014. In addition to providing the software widely used by AI developers, Nvidia also produces a range of hardware products specifically designed to increase the performance of AI algorithms.
Jensen Huang has served as CEO of Nvidia since its founding in 1993 and has since built the company into a leading provider of hardware, software and services for visual computing. Huang was a significant force behind Nvidia’s move into artificial intelligence, advancing a vision of creating a world of computers capable of understanding and responding to humanity’s needs. Huang has continued to be a strong advocate for AI and is often seen at the forefront of emerging technologies.NVIDIA earnings has inspired a huge stock rally in AI-exposed companies, with expectations of the positive market momentum to continue. Additionally, the success of Jensen Huang and Nvidia in transitioning the semiconductor company to the forefront of AI has been a key factor in this large intraday stock surge.
