Nvidia stock up 12% on revenue, AI potential

Nvidia CEO Jensen Huang in his usual leather jacket.


Nvidia shares opened more than 12% Thursday morning, a day after the chipmaker reported a hit on the top and bottom lines. Analysts are also bullish on the company’s AI vision.

Nvidia reported revenue of $6.05 billion for the fiscal fourth quarter and adjusted earnings per share of $0.88, beating Wall Street’s consensus. It forecast revenue of $6.5 billion for the coming quarter.

Analysts reacted positively to both Nvidia’s results and data center business growth, with a slew of repeated or improved ratings following the report. That industry is home to the bulk of Nvidia’s sales of artificial intelligence GPUs and grew 11% year-over-year.

More than a dozen analysts raised their target prices or had a positive view of the stock.

“AI adoption is at a turning point. OpenAI’s ChatGPT has sparked global interest, allowing people to experience AI firsthand and show what’s possible with generative AI,” CEO Jensen Huang said during a Wednesday call with analysts. Earlier this year, Huang called the transformation an “iPhone moment” during a fireside conversation at the University of California at Berkeley.

Nvidia’s AI game is “accelerating in a way that will have disruptive implications” for both its competitors and “the world at large,” Rosenblatt Securities’ Hans Mosesmann said in a Wednesday note.

Nvidia’s report on the same day Intel cut its dividend by two-thirds highlights a “multigenerational shift we’ve never seen,” Mosesmann continued, reiterating a Buy rating and setting a $320 price target.

Credit Suisse’s Chris Case was similarly bullish, calling Nvidia a stock “hard not to own” and maintaining it as a top pick in the industry. That assessment, Case wrote, was driven by “a combination of risky guess estimates coupled with what we believe is the strongest growth potential in AI/data center semifinals.” Case raised Nvidia’s price target from $210 to $275.

And in a U-turn, Goldman Sachs’ Toshiya Hari upgraded Nvidia to a Buy rating and set a price target of $275. “In hindsight, we recognize that our decision to sit on the sidelines pending a downturn in the company’s fundamentals was wrong,” Hari wrote in a Wednesday morning note, citing Nvidia’s “disciplined cost management” and accelerating adoption. from AI.

CNBC’s Michael Bloom, Jordan Novet and Kif Leswing contributed to this report.





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