Nvidia shares were 16% on Thursday, a day after the chip giant posted bumper earnings that exceeded Wall Street expectations.
The U.S. tech giant reported revenue of $221 in the fiscal fourth quarter$100 million, up 265% year-over-year, and net profit soared 769%, with AI technology continuing to drive the company's growth.
Nvidia's chips are used to train large AI models, such as those developed by Microsoft and Meta.
Nvidia shows no signs of slowing down. The company expects revenue in the current quarter to reach $24 billion, far exceeding expectations.
Nvidia CEO Jensen Huang told analysts on Wednesday that "fundamentally, conditions for continued growth in 2025 and beyond are excellent," adding to the bullish sentiment on the stock.
Nvidia's data center business, which includes H100 graphics cards for AI training, reported sales of $18.4 billion in the fourth quarter of last year, up 409% year-over-year.
Nvidia's upbeat outlook prompted brokerages to upgrade a series of ratings on Thursday. JPMorgan raised its price target on Nvidia from $650 to $850, while Bank of America Global Research raised its price target from $800 to $925.
Nvidia shares closed at 674 on Wednesday$72. Nvidia shares came under pressure ahead of earnings reports as traders took profits and investors worried that Nvidia might not be able to meet expectations too high.
But its better-than-market data dispelled those concerns and pushed other chip stocks around the world higher.