Nvidia surges after results, other AI stocks join the rally

Chipmaker Nvidia added over $129 billion in stock market value after the its hotly anticipated quarterly report beat estimates. Other AI hardware stocks caught the fever, raking gains.

Nvidia’s stock jumped almost 8% after its quarterly outlook exceeded analysts’ estimates, along with its January-quarter revenue and profits.

Following Nvidia’s report, server component supplier Super Micro Computer jumped almost 6%, while Nvidia rival Advanced Micro Devices rose 3%.

Broadcom and Marvell Technology, two more chipmakers benefiting from the surge in AI computing, rose over 2% each in extended trade.

Arm Holding added nearly 6%, now up more than 160% from the $51 price set in its initial public offering in September.

Nvidia forecast current-quarter revenue of $24.0 billion, plus or minus 2%. That was 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 and adjusted EPS of $5.16 vs $4.64 expected by analysts. Net income surged 769% from a year ago to $12.285 billion.

Nvidia’s stock has climbed over 40% in 2024 after more than tripling last year.

Nvidia has tussled with Amazon.com and Alphabet for a spot as Wall Street’s third-most valuable company. Nvidia has also recently replaced Tesla as Wall Street’s most traded stock by value.

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