Nvidia (NVDA) up +5% As Earnings Beat Looks to Reignite Weary Market

Nvidia (NVDA) is surging more than +5% after another massive earnings beat that painted a picture of insatiable demand for high-end computer chips, as well as few signs that the red-hot artificial intelligence-driven boom is slowing. 

Earnings came in at $1.30 against estimates of $1.24, while revenue showed a 64% year-over-year increase of $57.01B vs. projections of $54.74B from The Street. Strong guidance also further bolstered the bulls, as Nvidia said it expected sales of $65B for the current quarter.

Analysts also reacted positively, with firms like Deutsche Bank, Bernstein, Susquehanna, Benchmark, and more raising their price targets on Nvidia. The news seems to have breathed fresh life into a weary market where the S&P 500 had fallen about -4% from its all-time highs of 6,920.34 on Oct. 29 as of yesterday’s close. This morning, S&P Futures (/ES) are up more than +1.1% while Nasdaq 100 Futures (/NQ) are up about +1.6%. 

Other tech stocks are showing renewed vigor as well, with several other chipmakers rounding out some of this morning’s top performers; Super Micro Computer (SMCI) is up about +6%, AMD (AMD) has gained about +4%, and Broadcom (AVGO) rose over +3%. 

CEO Jensen Huang brushed aside concerns about an overheated tech sector that is running out of steam.

“There has been a lot of talk about an A.I. bubble. From our vantage point, we see something very different,” Huang said, describing “three massive platform shifts at once” happening in the world. This referred to the shift from general purpose computing to accelerated computing, powerful generative A.I. replacing classical machine learning, and the rise of agentic/physical A.I. – all of which Huang said Nvidia is uniquely well-positioned to deliver.

These comments also point to another important interpretation of Nvidia’s earnings, which is as a barometer for demand from other major corporations for A.I., chips, and other related products and services. Nvidia’s customer book shows some of the heaviest hitters around, like Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), Oracle (ORCL), and Meta Platforms (META). Slowing growth in Nvidia could then be reflective of waning appetite in this burgeoning industry. But for now, the company said they are “sold out” of cloud GPUs. Huang yesterday said they are “on track” for their $500B forecast of customer demand for Blackwell chips and Rubin accelerators, as well as suggesting an opportunity for even more.

Other highlights from yesterday’s earnings call include the critically important data center segment, which rose 66% year-over-year with a figure of $51.2B. Meanwhile, it delivered $4.3B in revenue from its video gaming chips, which is up 30% from the last year, and automotive/robotics sales showed 32% annual growth at $592M.

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