NVIDIA Corporation (NASDAQ: NVDA) stock surged in the extended trading Wednesday after the company issued a better-than-expected sales forecast for the current quarter.
Nvidia (NVDA) recently released a better-than-expected earnings report for the fourth quarter. The chipmaker also issued an optimistic revenue outlook for the next quarter amid robust demand for its AI chips.
The California-based company reported a fiscal fourth-quarter revenue of $22.10 billion, representing an increase from $6.05 billion reported a year earlier. Likewise, diluted earnings per share surged to $4.93, compared to the 57 cents recorded in the same period last year. Both the top and bottom line figures beat analysts’ estimates.
The surge in revenue comes in the wake of robust sales of Nvidia’s AI server chips, including the H100—a fourth-generation graphics processing unit (GPU) capable of training AI language models four times faster than its predecessors.
Nvidia’s Data Center business saw a 409% year-over-year revenue growth, driven by AI chip sales. However, recent U.S. restrictions on exporting AI chips to China have hindered further revenue growth.
The CEO of Nvidia, Jensen Huang, stated,
“We understood what the restrictions are, reconfigured our products in a way that is not software hackable in any way, and that took some time so we reset our product offering to China.”
Nvidia Q1 Guidance
Looking ahead, Nvidia provided a bullish outlook, projecting first-quarter sales to reach $24.0 billion, comfortably surpassing analysts’ estimates of $22.17 billion.
In a discussion with analysts, Huang expressed unwavering confidence in the company’s trajectory, citing favorable market conditions and a notable transition towards accelerators over central processors.
Nvidia also revealed its plans to launch the much-awaited B100 chip later this year but warned that it might be in limited supply due to high demand.
NVIDIA (NASDAQ: NVDA) Stock Reaction
NVDA stock soared 9.07% in the extended trading Wednesday after closing the regular trade at $674.72. The traders had exchanged hands with 62,571,645 (62.57 million) shares compared to the average daily trading volume of 45.05 million.
