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NVIDIA National Day - a euphemism for the criticality of the GPU manufacturer's earnings in sustaining the AI-driven gravy train - managed to deliver on the hype, with the company posting another shocker guidance that has sent a euphoric thrill across the halls of finance on Wall Street.
Today is National Nvidia day and i want you to remember that Jensen Huang is not sitting there sweating the quarter. He has bigger things in mind.
— Jim Cramer (@jimcramer) February 21, 2024
As we noted yesterday, NVIDIA (NASDAQ: NVDA) reported $22 billion in revenue for the last quarter against expectations of $20.6 billion. Additionally, the company announced a non-GAAP EPS of $5.16 vs consensus expectations of $4.64.
https://twitter.com/LatticeworkInv/status/1760624387097501732
NVIDIA currently has a gross margin of 76 percent - an astounding feat in a very competitive industry.
To grasp the scale of AI-related tailwinds that are keeping NVIDIA shares afloat right now, note that the company's data center segment reported quarterly revenue of $18.4 billion vs. just around $3.6 billion in the comparable quarter last year.
Of course, it was NVIDIA's guidance for the ongoing quarter that proved to be the icing on the proverbial cake. The GPU manufacturer now expects to earn $24 billion, give or take 2 percent, in the current quarter, which is significantly above analysts' prior estimate of $22.01 billion.
“Generative AI has kicked off a whole new investment cycle,” $NVDA Huang said. That will lead to a doubling of the world’s data center installed base over the next five years and “represent an annual market opportunity in the hundreds of billions.”
— notreload (@thudderwicks) February 22, 2024
During the earnings call, NVIDIA's CEO noted that the demand for the company's newest products will continue to "outstrip supply" for the rest of 2024. Moreover, the GPU maker now expects the world's installed base of data centers to double over the next five years.
PT Raised to $1,100 at KeyBanc, 'Strong Gen AI Demand Improving Supply Drives Beat and Raise Results'
PT Raised to $850 at JPMorgan, 'Demand Continues to Outstrip Supply Through CY24'
PT Raised to $875 at Goldman Sachs, 'Robust Gen AI infrastructure'
PT Raised to $911…
— Kaushik (@BigBullCap) February 22, 2024
These stellar earnings have now prompted almost all of the Wall Street analysts to increase their respective stock price targets for NVIDIA.
$NVDA PT to $820 on L/T Data Center TAM; Maintain Buy - Citi pic.twitter.com/trsRIeL0H7
— Kaushik (@BigBullCap) February 22, 2024
Citi analysts noted that NVIDIA's margins have improved materially on the back of increased sales of the H100 chip. While the Biden administration's export restrictions have hammered the company's China-related sales, it is managing to ship alternate products.
$NVDA almost up an entire $AMD pic.twitter.com/wfzp0dMIRD
— *Walter Bloomberg (@DeItaone) February 22, 2024
As a result of stellar earnings and a cascade of stock price upgrades, NVIDIA shares are up around 13 percent at the time of writing. The stock has added nearly $250 billion in market cap in the past few hours, which just about equals AMD's entire market-based valuation of $265 billion.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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