Whip Bulls reported that on the evening of February 23, according to foreign news reports, NVIDIA (NASDAQ ***NVDA) quarterly results amazed Wall Street, and NVDA stock price hit a new high of ** 15% today.
NVDA reported last night that its sales surged 265% from a year earlier, and that its revenue and profit, as well as its first-quarter guidance, were significantly higher than analysts' average expectations.
Investment bank Rosenblatt Securities responded to the news by raising its price target to $1,400 from $1,100.
Nvidia reported fourth-quarter revenue of $22.1 billion, compared to analysts' average expectations of $20.5 billion and earnings per share of 5$16, well above the average estimate of 4USD 64.
The company's sales jumped 265% from the same period last year, and net profit jumped 769% year-over-year.
In terms of guidance, the chipmaker expects its sales to reach around $24 billion, compared to analysts' average expectations of $22 billion.
NVIDIA is known to benefit from a huge demand for its graphics processing units (GPUs), which are widely used to create artificial intelligence (AI).
NVDA CEO Jensen Huang insisted that the development of AI in data centers is still in its infancy. If Huang is correct, then the NVDA can indeed go further in the medium to long term as well as in the short term.
Huang adds: My guess is that we've actually entered the first year of a 10-year cycle to spread this technology to every industry.
Meanwhile, investment bank Loop Capital wrote on Feb. 16 that Nvidia would benefit from data centers' huge spending on its chips. The bank began to give the stock a ** rating and a $1200 price target.