Nvidia Closes on $1T Market Cap After Immense Quarter
Nvidia (NVDA:US) shares traded as much as 30% higher on Thursday after the chipmaker offered an unprecedented FQ2 revenue upside.
Nvidia said it expects to generate $11 billion in second-quarter sales, up or down 2%. Analysts, on the other hand, were expecting only $7.17 billion. For the same quarter last year, Nvidia reported sales of $6.7 billion.
Nvidia shares surged to record highs on Thursday as AI-driven sales impressed. For the first quarter, the company reported a profit of $1.09 per share on sales of $7.19 billion. Analysts were looking for a profit of $0.92 per share on sales of $6.53 billion.
“The revenue growth reflects strong demand from large consumer internet companies and cloud service providers,” the company said in a statement. “Enterprise demand for GPU platforms was strong, although general purpose networking solutions declined both sequentially and from a year ago.”
Shares initially soared on the results announcement before continuing to march higher on positive updates during the earnings call. The company has secured enough supply and it is ramping up production of its high-end chips to respond to rapidly-growing demand from enterprise clients. Moreover, analysts heaped praise on the chipmaker.
“In the 15+ years we have been doing this job we have never seen a guide like the one NVDA just put up with FQ2 outlook that was by all accounts cosmological, and which annihilated expectations," Bernstein analysts said.
The stock was already up about 113% year-to-date, based on Wednesday’s close. Nvidia is now close to becoming the first-ever trillion-dollar chip business.
Several Congress members have hoped on Nvidia’s bull train recently. Rep. Kathy Manning, Daniel Goldman, Jonathan Jackson, Josh Gottheimer, Morgan McGarvey, Ro Khanna, and Sen. Tommy Tuberville were all investing in Nvidia shares this year.