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As NVIDIA continues to confound its detractors by posting rip-roaring revenues that now habitually beat Wall Street's consensus expectations, even the hardiest of cynics are beginning to concede that AI's 1995 moment has arrived - an homage to the year when the internet truly took off, transforming the world as we know it.
In their latest investment note, Wedbush analysts assert that for every $1 that is spent on NVIDIA's GPUs, the multiplier effect on the enterprise and consumer space could be $10 or more over the next few years as "AI hits every part of the economy." The analysts go on to note:
"NVIDIA and the golden GPUs are the start of the spending wave...not the end and now the Street awaits as several use cases get built out across the enterprise and consumer ecosystem."
This view that NVIDIA's best days are yet to come is becoming increasingly common on Wall Street. For instance, Rosenblatt recently noted:
“We are in the very early innings of what we call the Mother of All Cycles.”
The firm has pegged a $1,400 stock price target on NVIDIA's shares.
$NVDA | Rosenblatt Raises NVIDIA PT to $1400 from $1100.
Analyst comment: “We are in the very early innings of what we call the Mother of All Cycles.”
“Once again Nvidia smashed numbers for the quarter,”
“The shift to accelerated compute away from general compute is reaching… https://t.co/WXTcOZdNRt
— Wall St Engine (@wallstengine) February 23, 2024
As we noted earlier this week, NVIDIA 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. Moreover, 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. But it was NVIDIA's guidance for the ongoing quarter that proved to be the icing on the proverbial cake. To wit, 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.
Nvidia bears got crushed this week.
Short sellers lost $2.9 billion betting the stock would move lower after earnings.
Still, Nvidia remains the 3rd largest US short position, with $18.3 billion of short interest.
[Data from @S3Partners] pic.twitter.com/l1DHfADmmH
— Phil Rosen (@philrosenn) February 23, 2024
Meanwhile, investors who bet against NVIDIA have been utterly decimated by the post-earnings scorching-hot rally in the stock. As per a tabulation by S3Partners, the GPU manufacturer's short-sellers collectively lost $2.9 billion on the 22nd of February.
Nvidia $NVDA hits $2 Trillion Market Cap.
This milestone makes NVIDIA the first-ever semiconductor company to reach it and the 4th 🇺🇸 U.S. company overall. https://t.co/1l1AIHhNhN pic.twitter.com/UziC2Cniod
— Wall St Engine (@wallstengine) February 23, 2024
Finally, NVIDIA has now become the only semiconductor company in history to reach a market capitalization of $2 trillion.
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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