Nvidia (NASDAQ:NVDA) has wowed Wall Street with its quarterly results, and NVDA stock is flying 15% higher today to a new high. NVDA last night reported that its sales had soared 265% versus the same period a year earlier as its top and bottom lines, along with its first-quarter guidance all came in meaningfully above analysts’ average estimates.
Investment bank Rosenblatt Securities responded to the news by hiking its price target on the shares to $1,400 from $1,100.
More About Nvidia’s Results and Guidance
Nvidia reported Q4 revenue of $22.1 billion, versus analysts’ average estimate of $20.5 billion, while it generated earnings per share of $5.16, well above the mean outlook of $4.64.
The firm’s sales soared 265% versus the same period a year earlier, and its bottom line jumped 769% year-over-year.
On the guidance front, the chipmaker estimated that it would report sales of about $24 billion, versus analysts’ average outlook of $22 billion.
As is well-known, Nvidia is benefiting tremendously from the massive demand for its graphics processing units (GPUs), which are widely used to create artificial intelligence (AI).
Assessing NVDA Stock and Nvidia’s Outlook
NVDA CEO Jensen Huang has maintained that the development of AI within data centers is still in its initial stages. If Huang is correct, then NVDA stock can indeed rise much further in the medium term and the long term, as well as in the short term.
Huang added: “My guess is we are literally into the first year of a 10-year cycle of spreading this technology into every single industry.”
Meanwhile, investment bank Loop Capital on Feb. 16 wrote that Nvidia would get a boost from huge spending on its chips by data centers. The bank started coverage of the shares with a “buy” rating and a $1200 price target.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
