Summary
Nvidia stock rose 8% to $728.35 after better-than-anticipated fourth-quarter earnings report with massive growth in artificial intelligence. Other AI-associated stock prices also surged. AI-related tokens and memecoins also rose in price. Nvidia reported a total revenue of $22.1 billion, a 22% increase from the previous quarter and 265% higher than the year before. The company credited the increase in demand for generative AI and faster data processing for cloud service providers, enterprise software firms, and consumer internet companies. Geopolitical tensions between China and the United States have tempered high demand. Data center revenue was $18.4 billion for the quarter, an increase of 409% from the previous year. In the gaming sector, revenue grew 15% to $10.4 billion driven by the launch of the GeForce RTX 40 Super Series GPUs. Nvidia also showcased the Avatar Cloud Engine for next-generation games, demonstrating the future of video games with AI animating characters.
Key Points
1. Nvidia stock rose 8% to $728.35 from $674.72 during after-hours trading late Wednesday, following the company’s better-than-anticipated fourth-quarter earnings report—headlined by massive growth in artificial intelligence.
2. The hardware developer reported that its $22.1 billion revenue—logged in the fourth quarter ending January 28, 2024—was 22% higher than the previous quarter and 265% higher than the year before. Market watchers were expecting 208% growth ahead of the earnings report, noted Reuters.
3. Following Nvidia’s earnings news, other AI-associated stock prices surged, including Super Micro Computer rising 6%, Advanced Micro Devices by 3%, and chip manufacturer Broadcom by 2%, Reuters reported.