Celine Wright
Nvidia‘s quarterly revenue guidance drove an extended trading session rally in artificial intelligence-related stocks and fueled a 28 percent jump in shares at the company after the bell Wednesday, Reuters reported.
The market value of Nvidia increased by $200 billion to more than $960 billion after the company’s stock price hit a record high of $391.50.
Other AI technology companies also posted gains on Nvidia’s forecast-beating report. Advanced Micro Devices rose 10 percent, Microsoft and Google’s parent Alphabet climbed 2 percent, and C3.ai and Palantir Technologies surged 8 percent.
Nvidia said Wednesday its revenue for the first quarter of its 2024 fiscal year jumped 19 percent quarter-on-quarter to $7.19 billion, while net income for the period rose 26 percent year-over-year to $2.04 billion, or $0.82 per share.
The Santa Clara, California-based chipmaker forecasts second quarter sales of $11 billion, topping Wall Street estimates of $7.15 billion, Yahoo Finance reported.
Jensen Huang, founder and CEO of Nvidia, noted the company will increase supply for its data center family of products “significantly” to meet a growing demand.
“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”
