Nvidia shares pop on Q4 earnings, generative AI "hits tipping point"
Nvidia's stock popped after hours following its latest earnings report, which showed the AI boom is still booming.
By the numbers: Revenue from the chip maker's data center unit, which fuels AI efforts for thousands of organizations, reached $18.4 billion in its fourth quarter compared to analyst expectations of about $17.1 billion and up about 409% from $3.6 billion last year in the same period.
- Total revenue for the fourth quarter was $22.1 billion, up 22% from the previous quarter and up 265% from a year ago.
What they're saying: "Accelerated computing and generative AI have hit the tipping point," CEO Jensen Huang said in a statement. "Demand is surging worldwide across companies, industries and nations."
Context: Nvidia made more this quarter from data center revenue than it did in the entirety of its previous quarter.
The impact: Nvidia shares popped over 6.5% initially in after-hours trading.
The big picture: Nvidia stock, treated as a proxy for AI demand, is now the most-traded by value — dethroning Tesla for the title.
- The company, before a sell-off earlier this week, was the third most valuable company by market cap behind Microsoft and Apple.
- More than $1.2 trillion of its market cap has been added in the past 12 months.
What others are saying: Goldman Sachs' trading desk has called it "the most important stock on planet earth," per Bloomberg.
What we're watching: Commentary from Huang on how much more growth the company is expecting from Big Tech, as well as clues to any supply constraints.