Nvidia shares rose 10% to a record high

Nvidia CEO Jensen Huang delivers a keynote speech during the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.

Justin Sullivan | beautiful images

Nvidia Shares rose more than 10% on Thursday after the company topped Wall Street estimates and shows that the demand for artificial intelligence chips is still very large. The company’s data center revenue has grown a whopping 427% in the quarter.

First-quarter revenue came in better than expected at $26.04 billion versus LSEG’s estimate of $24.65 billion. And demand hasn’t wavered.

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

The stock surpassed $1,000 for the first time and hit an all-time high of $1,051.96 in intraday trading and is up about 111% this year. The previous high was $953.86 set on May 21.

Despite some analysts Fear of “air pockets” others have grown up even more optimistic about the company since its results. Bernstein’s Stacy Rasgon raised the company’s price target to $1,300, writing in a note to investors that the story surrounding the company “is clearly not over, or perhaps not near its peak.” .” He wrote that the stock seemed cheap.

Jefferies raised its target on the stock to $1,350 thanks to Blackwell’s strong growth and forecast an acceleration of “beat magnitude” later this year as launch platform.

Nvidia posted net income of $14.88 billion, or $5.98 per share, a significant increase from $2.04 billion, or 82 cents per share, the company reported in the first quarter of the previous year.

Nvidia announced a 10-for-1 stock split on Wednesday, the stock will begin trading on a split-adjusted basis when the market opens on June 10.

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