2024-02-22 21:12:00
Nvidia shares rose 16.4% to $785.38 at Thursday’s close in New Yorksince the rise in demand for its chips Artificial Intelligence (AI) helped the company forecast quarterly revenue well above Wall Street expectationswhich lifted technology stocks around the world.
The company added nearly US$280 billion to its market capitalization, recording the largest daily increase in stock market valueeclipsing the US$197 billion rise that Meta recorded earlier this month.
“The company is printing money right now,” said Stacy Rasgon, an analyst at Sanford C. Bernstein. “And the prospects for continued growth from here continue to look strong.”
Nvidia shares soared following releasing surprising results that solidified Wall Street’s bets on the potential of its artificial intelligence technologies. The manufacturer of chips It also presented projections above expectations, driven by AI spending from its largest clients, such as Microsoft and Meta. A string of results above estimates means the stock has been getting cheaper in terms of price-to-earnings ratio.
Nvidia exceeded high expectations, according to Morgan Stanley analyst Joseph Moore. “We had never seen more than $2 billion increase in quarterly revenue projections until Nvidia did it a few quarters ago, but it has become routine during the AI boom,” he wrote. “The intensity of demand for AI remains remarkable.”
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