Nvidia surges over 15% after Q4 revenues soars, up 265% year on year

Nvidia's stock price surged over 15% during the US opening trade on Thursday after it reported a stellar set of numbers for the 4th quarter ending January 28th. The stock has soared 7X since October 2022, when the demand for chips surged due to the beginning of the AI boom.

For the 4th quarter, the company's revenue soared 265% year-on-year to $22.1 billion, exceeding Wall Street expectations of $20.4 billion. Its full-year revenue came in at $60.9 billion, up 126%.

Talking about its latest set of numbers, Jensen Huang, founder and CEO of NVIDIA says, “Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations”.

For the current quarter the company expects revenue to come in at around $24 billion.

The rise & rise of Nvidia

Riding on the AI boom, chipmaker Nvidia's revenues have grown by almost 15X in the last 10 years. As per Wall St Engine, a financial services platform in the U.S, in 2013 the company recorded a revenue of $4.13 billion which rose to a whopping $60.9 billion in 2023.

Comparing the November to January quarter performance in the last four years, the revenue of the chip maker has risen over 7X and the net-income by 12X. In Q4FY19 the company reported $3.1 billion in revenue with $951 million in net income. In the same quarter of FY23, the revenue went up to $22.1 billion and net income to $12.3 billion.

The company’s market value has surged by around $600bn since the start of the year, and its gains have powered nearly a quarter of the S&P’s gains since January, says Financial Times.

Also Read: Nvidia's quarterly revenue beats estimates, rockets 265%, fueled by AI boom

Brokerages on Nvidia

Morgan Stanley has maintained its Overweight rating on NVIDIA and increased the stock's price target to $795 from $750

Bernstein has raised NVIDIA's target to $1,000 from $700, keeping an 'Outperform' rating.

JPMorgan raised its price target on Nvidia’s stock from $650 to $850.

Bank of America Global Research hiked its target price from $800 to $925.