NVIDIA appears to have fully adapted itself as the face of the ongoing AI revolution based on the company’s blazing-hot stock price growth. For those who may not be aware, NVIDIA recently released financial results for the first quarter of its fiscal year 2024. The company’s $7.19 billion in quarterly revenue topped average projections by 13%. Similar to this, the green team announced an optimistic adjusted EPS of $1.09, beating the $0.92 consensus forecast.
The company’s wildly optimistic forecast that it will achieve an adjusted gross margin in the range of 69.5 percent and 70.5 percent in its fiscal Q2 2024 was the real stunner for investors. For reference, analysts predicted that this statistic would be close to 66.9 percent. Additionally, the company anticipates revenue of $11 billion (plus or minus 2%) for the second quarter of 2024. This outlandish forecast was a staggering 55 percent more than the current average projection of $7.1 billion.
NVIDIA shares finished at $305.38, giving the company a market value of $755.24 billion.
This results in a $979.43 billion market cap. This implies that NVIDIA has raised its market capitalization by a staggering $224.19 billion in the course of just a few short hours. Only the $597 billion increase in market value that PetroChina had registered on the 5th of November 2007 is bigger than this record in the history of the market.
According to Nomura, NVIDIA’s prognosis for the July quarter indicates that the recovery in chip demand from US cloud server providers started sooner than anticipated. The brokerage believes NVIDIA extremely high overall sales estimate implies ongoing quarter-over-quarter growth in the July quarter. NVIDIA’s PC-related (gaming) sales increased quarter over quarter in the April quarter.
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