Palantir Technologies (NYSE: PLTR) stock spiked after Nvidia (NVDA) reported earnings that blew past expectations.
Nvidia (NVDA) has stunned Wall Street with its fourth-quarter financial report, revealing a revenue of $22.1 billion, a significant beat compared to the consensus estimate of $20.62 billion. Moreover, the tech giant reported earnings of $5.16 per share, surpassing estimates of $4.64.
Key highlights from the earnings report include a substantial surge in data center revenue by 409% and a 56% increase in gaming revenue. Professional visualization revenue also grew strongly, rising by 105%. However, automotive revenue witnessed a slight 4% decline compared to the previous year.
Nvidia has provided a positive outlook for fiscal year 2025, estimating revenue to hover around $24 billion, with a variance of plus or minus 2%, in contrast to estimates of $22.16 billion.
Jensen Huang, the founder, and CEO of Nvidia, expressed that accelerated computing and generative AI have reached a “tipping point”, with a notable surge in demand observed globally across various companies, industries, and nations.
Huang added,
“The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward.”
Both Nvidia and Palantir (NYSE: PLTR) have benefited from the rising demand for AI over the past 18 months. Palantir highlighted a continual surge in demand for its AI platform in its early February quarterly report.
Furthermore, several AI-related names, including C3.Ai (NYSE: AI), SoundHound AI (NASDAQ: SOUN), and BigBear.Ai (NYSE: BBAI), witnessed a rise alongside Nvidia. Several chipmakers also got a boost as Nvidia shares soared.
It’s important to mention that Nvidia disclosed investments in Arm Holdings, Recursion Pharmaceuticals, SoundHound AI, TuSimple Holdings, and Nano-X Imaging in a 13-F filing with the SEC earlier this month. Following Nvidia’s results, all these companies are also experiencing upward momentum.
Palantir (NYSE: PLTR) Stock Price Action
PLTR stock jumped 3.74% to close at $23.59 on Thursday. The traders had exchanged hands with 64,040,658 (64.04 million) shares compared to the average daily trading volume of 69.38 million.
