Calculate your SIP ReturnsExplore

Nvidia stock skyrockets: Up 40% in 2024 after tripling last year

22 February 20244 mins read by Angel One
Highlighting Nvidia's remarkable stock surge and strong quarterly performance, the blog delves into the company's pivotal role in the AI boom.
Nvidia stock skyrockets: Up 40% in 2024 after tripling last year
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Nvidia, the leading chipmaker, experienced a remarkable surge in its stock market value, adding over $129 billion late on Wednesday. This surge followed the release of its highly anticipated quarterly report, which surpassed estimates and ignited gains in other AI hardware stocks.

Strong Quarterly Performance

Nvidia’s stock soared almost 8% after the company’s quarterly outlook exceeded analysts’ expectations. It also reported impressive figures for its January-quarter revenue and profits, further boosting investor confidence.

Beneficiary of AI Boom

The company has been a major beneficiary of the AI boom, with technology companies increasingly integrating AI into their products and services. Nvidia’s strong performance is seen as a testament to the continued growth of AI in various industries.

Positive Impact on Related Stocks

source: finchat.io

The positive news from Nvidia had a ripple effect on other AI-related stocks. Server component supplier Super Micro Computer saw its stock jump almost 6%, while Nvidia’s rival, Advanced Micro Devices, rose 3%. Chipmakers Broadcom and Marvell Technology also experienced gains of over 2% each in extended trade.

Arm Holding’s Surge

Arm Holding, another company benefiting from the AI computing surge, saw its stock rise nearly 6%, reaching more than 160% above its initial public offering price set in September.

Impressive Revenue Forecast

Nvidia forecasted current-quarter revenue of $24.0 billion, plus or minus 2%, well above the $22.17 billion predicted by analysts. The company reported fourth-quarter revenue of $22.10 billion, beating estimates of $20.62 billion. Its adjusted earnings per share (EPS) of $5.16 also surpassed analysts’ expectations of $4.64.

Stellar Financial Performance

Nvidia’s net income surged 769% from a year ago to $12.285 billion, reflecting its strong growth trajectory. Despite concerns that its quarterly report might fall short of expectations, Nvidia’s stock surged to $724 on Wednesday, although still below its record high close of $739 on Feb. 14.

Impressive Stock Performance

Nvidia’s stock has climbed over 40% in 2024, following a more than triple increase last year. The company has been competing with Amazon.com and Alphabet for a spot as Wall Street’s third-most valuable company.

Most Traded Stock by Value

Nvidia has also surpassed Tesla as Wall Street’s most traded stock by value, reflecting its increasing popularity among investors.

Conclusion

Nvidia’s stellar performance in its quarterly report has reaffirmed its position as a leader in the AI hardware market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Open Free Demat Account!

Enjoy Zero Brokerage on Equity Delivery

Join our 2 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link

Enjoy Zero Brokerage on
Equity Delivery