Nvidia’s shares surged by over 10% to hit a record high following the company’s latest financial results, which signaled unwavering demand for its artificial intelligence chips. The robust performance in the first quarter surpassed Wall Street estimates, with revenue reaching $26.04 billion, topping the expected $24.65 billion.
The impressive growth was primarily driven by a significant 427% increase in data center revenue, showcasing the strong demand for AI-related products. Looking ahead, Nvidia provided a bullish outlook, projecting $28 billion in revenue for the upcoming quarter, surpassing the estimated $26.61 billion.
As a result of these stellar results, Wall Street analysts have become more bullish on Nvidia’s prospects. Bernstein’s Stacy Rasgon raised the firm’s price target to $1,300, stating that the narrative surrounding the company is far from reaching its peak. Similarly, Jefferies increased its target to $1,350, citing the anticipated success of Nvidia’s new AI graphics processors.
Nvidia’s net income also saw a substantial jump, reaching $14.88 billion, or $5.98 per share, compared to $2.04 billion, or 82 cents per share, in the same quarter last year. The company’s stock price hit an all-time high of $1,051.96, with shares up approximately 111% year-to-date.
In a strategic move, Nvidia announced a 10-for-1 stock split, set to take effect on June 10. This decision aims to make the stock more accessible to a broader range of investors. Amidst concerns of an impending cooldown, the company’s strong performance and positive outlook have instilled confidence in investors and analysts alike, driving Nvidia’s stock to new heights.
