Nvidia shares pop 10% to record high after forecast signals unwavering demand for AI chips

Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California. Justin Sullivan | Getty Images

Nvidia shares jumped more than 10% Thursday after the company topped Wall Street estimates and showed that there's still ferocious demand for its artificial intelligence chips. The company's data center revenue grew by a whopping 427% during the quarter.

First-quarter revenue came in higher than expected at $26.04 billion compared to the LSEG estimate of $24.65 billion. And the demand isn't wavering.

The company issued strong guidance, saying it expects revenues at $28 billion in revenue for the current quarter, beating the LSEG estimate of $26.61 billion.

Shares passed $1,000 for the first time reaching an all-time high of $1,051.96 during intra-day trading, and are up about 111% this year. Its previous high of $953.86 was set on May 21.

Despite some analysts fearing an "air pocket," others have grown even more bullish on the company since its results. Bernstein's Stacy Rasgon increased the firm's price target to $1,300, writing in a note to investors that the narrative surrounding the company is "clearly nowhere near its end, or likely nowhere near its peak." He wrote shares seem inexpensive.

Jefferies raised its target on the stock to $1,350 due to a strong ramp for Blackwell and anticipation of an acceleration in "magnitude of beats" later this year when the platform launches.

Nvidia posted net income of $14.88 billion, or $5.98 per share, a dramatic pop from the $2.04 billion, or 82 cents per share, it reported in the year-ago quarter.

Nvidia announced a 10-for-1 stock split on Wednesday, with shares set to begin trading on a split-adjusted basis at market open on June 10.

OTHER NEWS

22 minutes ago

Queen Mary of Denmark stuns in orange as she hosts special event at a college in Copenhagen

30 minutes ago

Are We Loving Our Pets to Death?

30 minutes ago

IDF drone fleet chief to 'Post': What we do to save hostages in Gaza

30 minutes ago

Gas prices increase over shortage fear

30 minutes ago

Sailing-Brazil to join SailGP with backing from Abu Dhabi fund

30 minutes ago

Part 2: South Africa Speaks: BAV Top 20 Playtime Brands in 2024: PlayStation leads the way

30 minutes ago

Gaza war: 22 killed in shelling near Red Cross office

30 minutes ago

Sydney Sweeney purchases $13.5 million Florida Keys mansion, joining celebrities in 'tropical anonymity'

31 minutes ago

“Gandalf The Grey Fell Off Stage And Straight Onto Me,” Recalls Shocked London Theatregoer

31 minutes ago

Trying to time the housing market after the rate cut? What experts advise

31 minutes ago

New pools in Toronto finally opening as suffocating heat continues

31 minutes ago

Introducing Houston’s new Storm Tracker 2 weather app from KPRC: Because Mother Nature doesn’t send invitations

31 minutes ago

Black men ask, “What am I voting for?” as they battle frustration

31 minutes ago

A state-by-state breakdown of abortion laws 2 years after Roe was overturned

31 minutes ago

Kyle Walker’s ex Lauryn Goodman defends decision to attend England Euros game with son

31 minutes ago

Harry Potter star Matthew Lewis explains why he is in ‘no rush’ to join HBO reboot series

31 minutes ago

Rejuvenated Germany can win Euros, says World Cup winner Thon

34 minutes ago

Home prices just hit a record high. Here are 4 things to know about housing

34 minutes ago

A Roman beach destroyed by Mount Vesuvius is open to the public for the first time

37 minutes ago

Biggest sixes of T20 World Cup 2024 including two monster hits from Nepal batsmen

38 minutes ago

Star Trek Actors Band Together to Save Lower Decks

38 minutes ago

NBA insider on why Orlando Magic signing Klay Thompson and San Antonio Spurs pursuing Chris Paul very important risks

38 minutes ago

PM says Inflation falling to 2% shows plan for economy is 'working'

38 minutes ago

Ferrari Is Removing Built-In Nav Because Who Even Uses That

38 minutes ago

Indiana Player Visibly Annoyed With Caitlin Clark During Fever-Dream

38 minutes ago

Perth wonder mum welcomes seventh child

38 minutes ago

Summer Covid variant sparks warning as cases surge across UK

38 minutes ago

Mason Greenwood saga takes twist as Man Utd offered two swap deals, with one far more surprising

38 minutes ago

Victorian nurses to decide on massive 28.4 per cent wage boost after industrial action shut down hospital beds, surgeries

38 minutes ago

Jagan accuses Andhra CM of vendetta politics after YSRCP office demolition

38 minutes ago

Austin Butler looks dapper at the premiere of 'The Bikeriders'

38 minutes ago

Cyberattacks crippled thousands of car dealers. Here’s what to know.

38 minutes ago

Kemi Badenoch says Keir Starmer will reverse Brexit

41 minutes ago

The rotation of Earth's inner core is slowing down

45 minutes ago

Marcus Smith stars as England thrash Japan 52-17 in Tokyo

45 minutes ago

Rasmus Hojlund happy to avoid ‘awkward’ situation with Manchester United team-mate

45 minutes ago

Whale rescued after week-long rescue operation

45 minutes ago

'Biggest issue is we give hero status to someone and forget...': Ashwin on why Gautam Gambhir is 'misunderstood person'

45 minutes ago

60s music legend, 91, sparks concern after cancelling concerts on 'doctor's orders'

45 minutes ago

Nico Williams transfer news: What Premier League fans can expect from Spain star