{"id":9812,"date":"2024-02-21T22:20:49","date_gmt":"2024-02-21T22:20:49","guid":{"rendered":"https:\/\/topat10.com\/?p=9812"},"modified":"2024-02-21T22:20:49","modified_gmt":"2024-02-21T22:20:49","slug":"nvidia-just-crushed-earnings-again-top-analyst-says-its-another-drop-the-mic-moment-that-confirms-the-ai-revolution","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=9812","title":{"rendered":"Nvidia just crushed earnings again. Top analyst says it\u2019s another \u2018drop the mic\u2019 moment that confirms the AI revolution"},"content":{"rendered":"\n
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Will all the AI hype lead to lasting earnings results that live up to Wall Streets\u2019 lofty expectations? That was the question that had investors watching Nvidia\u2019s earnings report like it was a second super bowl on Wednesday. The semiconductor giant, whose chips are foundational for generative AI, even had Goldman Sachs<\/a> analysts label it \u201cthe most important stock<\/a> on planet earth\u201d before its fourth quarter earnings release. And CEO Jensen Huang and company managed to live up to Wall Street\u2019s rosy forecasts on Wednesday.<\/p>\n

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Nvidia turned in first quarter revenues of $22.1 billion on Wednesday, up 265% from a year ago, compared to analysts\u2019 consensus forecast for a 240% jump to $20.6 billion. Adjusted earnings per share also rose 765% from a year ago to $5.15 per share, versus a consensus forecast for $4.64. And gross margins, a key profitability metric, continued to rise amid the AI boom, hitting 76.7% in the quarter.<\/p>\n

Nvidia shares whipsawed in early after hours trading as investors digested the numbers, before rising more than 10% by 5 pm ET. Huang, who is also the founder of NVIDIA, said that the earnings are evidence that \u201caccelerated computing and generative AI have hit the tipping point\u201d in a statement<\/a>.<\/p>\n

\u201cDemand is surging worldwide across companies, industries and nations,\u201d he added, promising that the \u201cyear ahead will bring major new product cycles with exceptional innovations to help propel our industry forward.\u201d<\/p>\n

Nvidia\u2019s outlook, which has been carefully watched by Wall Street for evidence of how the AI boom is developing, also came in ahead of expectations. Management forecast revenues of $24 billion in the first quarter, compared to analysts\u2019 forecasts of $22.5 billion.<\/p>\n

Analysts celebrated Nvidia\u2019s earnings results. Wedbush\u2019s Dan Ives argued that Huang affirmed his standing as \u201cThe Godfather of AI\u201d in another \u201cdrop the mic\u201d moment. \u201cThe AI Revolution is here,\u201d said Ives. And Gene Munster, a veteran tech analyst and managing partner at Deepwater Asset Management, argued that this is just the beginning of multiple AI \u201cwaves\u201d that will drive Nvidia shares higher.<\/p>\n

\u201cLong-term: The story is intact,\u201d Munster wrote in a post<\/a> on X<\/a>. \u201cThe business is powering along despite the headwind from China restrictions. The reason is we are still early in the first wave of the AI infrastructure wave, selling to hyperscalers and AI startups.\u201d<\/p>\n

Before Wednesday\u2019s strong earnings, Nvidia shares had driven roughly 30%<\/a> of the jump in the S&P 500 so far this year. The chipmaker\u2019s stock soared roughly 40% year-to-date and an incredible\u2014some argued, unsustainable<\/a>\u20141585% over the past five years before the fourth quarter earnings release.<\/p>\n<\/div>\n

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