Stock exchanges|The top result of Nvidia, which benefits from the artificial intelligence boom, predicts that the stock market rally on Wall Street may continue. Disappointment would have depressed the market.
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Nvidia’s excellent result relieved Wall Street investors.
Nvidia’s turnover more than tripled and the operating profit reached 18.1 billion dollars.
In the second quarter, Nvidia expects revenue to reach 28 billion dollars.
Nvidia’s share price has risen by more than 90 percent this year.
on Wall Street there was a big sigh of relief when the semiconductor company Nvidia published its first quarter results before midnight Finnish time after the stock markets closed on Wall Street.
Nvidia’s excellent result means that the stock market rally has room to continue.
The result was nervous in advance, because if the result had fallen short of expectations, the disappointment would have been huge and the stock market rally on Wall Street could probably have frozen.
This is because Nvidia, which is getting its momentum from the artificial intelligence boom, has been the driving force of the US stock market since last year. It is one of the so-called power six, which is what the technology companies driving the price increase are called.
“I think I heard a collective sigh of relief on Wall Street”, described the mood at Running Point Capital’s investment director Michael Schulman for the news agency Bloomberg.
Nvidia’s the numbers published now not only met expectations, but exceeded them both in terms of profit and turnover.
Also, the instructions given by the company, i.e. the expectations for future development, turned out to be tougher than expected. CEO of Nvidia Jensen Huang painted the company as ready for the next wave of growth.
Nvidia’s revenue more than tripled to $26 billion, compared to analysts’ expectations of $24.7 billion. A year ago, turnover was 7.2 billion dollars.
The company’s operating profit fell to $18.1 billion, while forecasts expected a result of $16.3 billion. At the same time a year ago, the result was 3.1 billion dollars.
In the second quarter, Nvidia expects revenue to reach 28 billion dollars, which is also more than the market has predicted.
All these numbers sent a message that companies’ investments in the development of artificial intelligence are not slowing down, contrary to what was previously feared.
Nvidia manufactures graphics processors used in the development of artificial intelligence and is one of the biggest beneficiaries of the artificial intelligence boom.
Its customers include Amazon, Alphabet, Meta and Microsoft.
Ferocious the result sent Nvidia’s price up aftermarket on Wall Street. The increase managed to accumulate six percent. At the same time, Nvidia’s share broke the 1,000 euro limit for the first time. Other techno stocks also gained momentum.
Also in Asia, the prices of semiconductor companies took off on Thursday morning, and Bloomberg’s Asia Pacific semiconductor index rose to its highest level in more than three years.
Nvidia stock continued its wild rise on Thursday. The share had risen by more than ten percent by 8:30 in the evening Finnish time. The stock has gained more than 100 percent this year.
The share price was boosted by the fact that Nvidia announced that it would split its shares into ten parts to make it easier for its employees and investors to buy shares.
A split means that, for example, instead of one share worth one thousand dollars, the shareholder would receive ten shares worth one hundred dollars.
The last time Nvidia split its shares was three years ago.
Nvidia’s market value has already risen to 2,300 billion dollars and it is the third most valuable listed company in the US after Microsoft and Apple.