Nvidia stock surges after results, other AI stocks rise

(Reuters) – Nvidia added more than $129 billion to its stock market value late on Wednesday after the chipmaker’s highly anticipated quarterly report beat estimates and led other AI hardware stocks.

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

Nvidia has been a top beneficiary in the race for technology companies to build artificial intelligence into their products and services. That made the Santa Clara, California company’s outlook a key test of whether Wall Street’s AI-fueled rally is likely to continue or potentially reverse.

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

Broadcom and Marvell Technology, two other chipmakers benefiting from the boom in AI computing, rose more than 2% each in extended trading.

Arm Holding added about 6%, now more than 160% above the $51 price it set in its initial public offering in September.

Nvidia estimates revenue of $24.0 billion in the current quarter, plus or minus 2%. That was well above the $22.17 billion expected by analysts, according to LSEG data.

The company reported fourth-quarter revenue of $22.10 billion, beating estimates of $20.62 billion, and adjusted EPS of $5.16, versus the $4.64 expected by analysts. Net income rose 769% from a year earlier to $12.285 billion.

Concerns that Nvidia’s quarterly report may not meet Wall Street’s high expectations in recent days have sent its stock down nearly 9% from record highs. Its price rose to $724 late Wednesday, still below the record high of $739 set on Feb. 14.

Including Wednesday’s after-hours gains, Nvidia’s stock is up more than 40% in 2024 after more than tripling last year. In recent sessions…

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