Computing infrastructure company Nvidia Corp shares had a strong gap up opening and hit a fresh record high on February 22 after its quarterly earnings came in better than analysts expectations, lifting the mood at Nasdaq 100 and S&P 500 indices.
The stock opened at $750 and hit a record high of $781.54. At 10:54 pm IST, it was quoting at $776, up 15 percent on the Nasdaq.
The chip maker's net income for the fourth quarter ended January 28, 2024 grew by 769 percent on-year and 33 percent sequentially to $12.3 billion, driven by increasing demand for artificial intelligence worldwide.
Revenue for the same period increased sharply to $22.1 billion, up 22 percent from the previous quarter and up 265 percent from a year ago.
For the quarter, "GAAP earnings per diluted share was $4.93, up 33 percent from the previous quarter and up 765 percent from a year ago. Non-GAAP earnings per diluted share was $5.16, up 28 percent from the previous quarter and up 486 percent from a year ago," the company said in its press release.
For the fiscal 2024, revenue was up 126 percent at $60.9 billion and net income grew by 581 percent on-year to $29.76 billion.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of Nvidia.
He further said Nvidia RTX, introduced less than six years ago, is now a massive PC platform for generative AI (artificial intelligence), enjoyed by 100 million gamers and creators.
Its data centre business revenue for the quarter was a record $18.4 billion, up 27 percent from the previous quarter and up 409 percent from a year ago. Full-year revenue rose 217 percent to a record $47.5 billion.
Meanwhile, the rally in Nivdia aided the strong rally in the Nasdaq 100, which jumped 2.5 percent or 388 points to 15,968.
At the same time, Dow Jones Industrial Average was up 0.71 percent or 274 points at 38,887, and S&P 500 rose 85 points or 1.7 percent to 5,067.
In fact, all the above three indices had a strong gap up opening on Thursday.
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