The chip manufacturer NVIDIA published its quarterly figures for the fourth quarter of the 2024 financial year after trading on February 21, 2024. The boom in the use of artificial intelligence continues to ensure strong growth for the chip company NVIDIA. In the last quarter, sales of 22.1 billion US dollars (around 20.3 billion euros) were more than three times as high as the year before. Analysts on average had expected $20.4 billion. Shares made significant gains on Thursday.
The key figures of the semiconductor company, which specializes in artificial intelligence, were once again remarkably good, wrote analyst Stacy Rasgon from Bernstein Research in a study. Despite the high market expectations, the results were clearly above. The expert increased his price target from $700 to $1,000. He sees plenty of price potential and continues to rate the shares as “Outperform”.
The explosive growth of the chip flagship NVIDIA triggered euphoria and price records across industries on Thursday. Technology stocks were in high demand worldwide. In the expectation that with artificial intelligence and the necessary semiconductors and components, profits in the industry will skyrocket in the coming years. This rapid growth caused the share price to rise by 11.61 percent to $753.09 in US trading. This means that the stock market value of the California company has reached the $2 trillion mark. NVIDIA now only has Apple and Microsoft ahead of it in terms of market value.
At $18.4 billion, the business with technology for data centers even brought in five times as much sales as in the same quarter of the previous year. The NVIDIA technologies, originally developed for graphics cards, have long been proven in computing work to train applications with artificial intelligence. This is causing NVIDIA’s business – and stock market value – to rise rapidly.
The numbers were eagerly awaited. Observers assumed that the slightest hint of a slowdown in growth would have sent the price down. However, NVIDIA did not disappoint.
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The outlook for the current quarter was also above expectations. NVIDIA announced revenues of around $24 billion, while the market had expected an average forecast of around $22 billion.
NVIDIA’s quarterly profit jumped from $1.4 billion to almost $12.3 billion within a year. The use of artificial intelligence has reached a turning point and demand is increasing worldwide, emphasized NVIDIA boss Jensen Huang.
NVIDIA’s business is being slowed somewhat by the US government’s measures against deliveries of AI technology to China. NVIDIA is not allowed to sell its most modern chip systems, which are used to train artificial intelligence, there. Washington points out the risk that the technology could be used for military purposes. NVIDIA has not yet received an export license for a slimmed-down version of the devices, which is why it recently delivered chips whose performance is below the specified limits.
China had a mid-single-digit percentage share of data center technology business in the last quarter, it said. The US government wants NVIDIA to be as successful as possible in China, but within performance constraints, Huang said.
“NVIDIA is cementing its reputation for setting exceptional growth targets and then exceeding them,” said analyst Derren Nathan from investment firm Hargreaves Lansdown. The boom in artificial intelligence is becoming a hype. The operators of data centers are literally running over the company’s door with their demand for the computing platform called “Hopper”. And dethroning NVIDIA, says Nathan, will be a difficult undertaking given the “incredible complexity” of its products.
Editorial team finanzen.net / dpa-AFX
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