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Jensen Huang, Founder, President and CEO NVIDIA.


Nvidia Surprises Everyone
with its Quarterly Results

February 21, 2024, marked a significant milestone for Nvidia as the company unveiled financial results that surpassed all market expectations. Investors, analysts, and technology enthusiasts turned their attention to this artificial intelligence giant, quickly realizing the reason for such anticipation, notes Market Analyst Antonio Di Giacomo at the multi-award winning broker XS.com.

In its fourth quarter of the fiscal year, Nvidia reported impressive revenues totaling $22.103 billion. This result significantly exceeded analysts' estimates, with projected revenues of around $20.550 billion. But that's not all; earnings per share exceeded expectations, reaching $5.16, compared to the expected $4.61. To illustrate the company's growth and the benefits for its shareholders, for the same quarter in 2023, the artificial intelligence technology firm reported earnings per share of $0.57.

The news of Nvidia's impressive financial results prompted an immediate market reaction. After-market close, the company's shares recovered the day and week's losses and surged more than 7%, reaching the $725.00 zone compared to the $680 at the session's opening. This substantial increase in the value of the shares reflects the market's confidence in Nvidia's future.

Nvidia's growth expectations continue to be impressive. The company projects its revenues to reach $24.000 billion and operating expenses to be approximately $3.500 billion. These projections are even more ambitious than the market initially expected, demonstrating the company's confidence in its ability to continue leading the artificial intelligence and cutting-edge technology market.

Nvidia has solidified its position as the undisputed leader in artificial intelligence. Its microprocessors are considered the most powerful in the market, and demand for its products continues to grow exponentially, driven by the increasing needs associated with generative artificial intelligence. This growing global demand has significantly contributed to Nvidia's rapid growth in value and its rise as one of the world's most valuable companies.

From February 23, 2023, to February 21, 2024, Nvidia's shares have experienced an exponential increase of over 200%, rising from $230 to $725.00 after the post-market. This impressive growth has positioned Nvidia as the third-largest capitalized company in the world, surpassing tech giants like Amazon and Alphabet. With such solid performance and promising prospects, Nvidia continues to lead the way in the exciting world of technology and artificial intelligence, inspiring both its shareholders and the industry.

[Ed Note]: According to TipRanks.com, The Wall Street analysts rate Nividia a Strong Buy based on 32 Buys and 1 Hold. Among the analysts following the stock, NVDA has an average price target of $810.15 with a high forecast at $1200 and a low of $575.00.

The Stock Appear to be in a Super Cycle

Beware Nvidia mimicking a meme stock, cautions Kathleen Brooks at XTB.com. “Thus, while there will be competitors that will eat away at Nvidia’s market share down the line, today it is justified in being labelled the most important stock in the world. However, this does not mean that we don’t urge some caution. Nvidia’s share price has been extremely volatile in recent days, and it is trading like a meme stock. There was also a frenzy in Nvidia options trading in recent days, with half of the options having strike prices of $1,300, nearly double where the stock is trading currently. If this strike price is reached, it would value Nvidia at $3.2 trillion. This might seem like madness, but Nvidia’s recent share price history tells a different story. Nvidia’s share price is up by more than 220% in one year, which is fairly rare for the market overall, however, it is not that rare for Nvidia. The share price has gained more than 1500% in 5 years. Thus, while call options with a $1,300 strike seem crazy, they are not beyond the realm of possibility for Nvidia, as the stock appears to be in a super cycle. It is also worth noting that a share price rise may not push its P/E ratio too much higher, since earnings are also growing at a rapid clip. Nvidia’s stock price does not look extremely overvalued, even with its 37% rise YTD,” adds Brooks.

Editor’s Note: Antonio Di Giacomo is a Market Analyst at XS.com, the global FinTech and financial services provider for online trading and investing, was awarded “Best Global Broker” during the Qatar Financial Expo & Awards. For further information on this global multi-award winning broker, visit XS.com.

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