Nvidia’s stock price soared to an all-time high on Thursday, with its market capitalization experiencing the largest single-session increase in history, surpassing Meta Platforms’ historic gain just three weeks prior.
Nvidia’s stock rose 16%, adding approximately $277 billion to its market capitalization and bringing its total market value close to $2 trillion. The increase in market value surpassed the $197 billion gain made by Facebook parent Meta at the beginning of the month.
Nvidia reported fourth-quarter revenue of $22.10 billion
The chipmaker’s stock rose after it reported blowout results that confirmed Wall Street’s belief in the potential of its artificial intelligence technologies. The company’s guidance also exceeded Wall Street expectations, thanks to AI spending among its largest customers, including Microsoft Corp. and Meta.
According to Bloomberg, a series of estimate-beating results has resulted in the shares becoming less expensive on a price-to-earnings basis.
Nvidia exceeded high expectations, according to Morgan Stanley analyst Joseph Moore.
“We had never seen $2 billion of upside to quarterly revenue guidance until Nvidia did it a few quarters ago, but it has become routine during the AI surge,” he wrote. “The strength of AI demand continues to be remarkable.”
Nvidia reported fourth-quarter revenue of $22.10 billion, up from $6.05 billion and exceeding analyst expectations of $20.62 billion. Adjusted for certain items, fourth-quarter earnings were $5.16 per share, versus estimates of $4.64 per share, according to LSEG data.
Nvidia expects first-quarter revenue growth of 233%, outpacing Wall Street expectations of 208% growth. The company expects revenue of $24.0 billion in the current quarter, plus or minus 2%. According to LSEG data, analysts predicted an average revenue of $22.17 billion. It expects the first-quarter adjusted gross margin to be 77%, plus or minus 50 basis points. On average, analysts expect a gross margin of 75.6%.