Nvidia: results top Street forecast; shares soar

(CercleFinance.com) - Graphics chipmaker Nvidia reported quarterly results late on Thursday that handily beat Wall Street's expectations, prompting its shares to jump 7% on the Nasdaq today.


After excluding exceptional items, Nvidia earned 1.53 dollar a share in the fourth quarter ended 26 January, up 66% from a year ago, beating the consensus by 19 cents a share.

Its revenue jumped 41% to 3.1 billion dollars, also beating consensus of 3 billion dollars.

Analysts noted that the company's first-quarter outlook of 1.36 dollar is 18 cents ahead of consensus.

In its statement, Nvidia simply stated that it is "well positioned for the greatest technology trends of our time," such as gaming, datacenters, autos and enterprises.

On top of this, the group seems to be ideally placed to benefit from the next wave of AI.

While Nvidia's results are "important," we continue to think "the longer-term secular trend relating to the next phase of meaningful conversational AI, natural language processing, and recommendation engine deployments is a key consideration," said Aaron Rakers, an analyst at Wells Fargo.

Shares of the Santa Clara, California-based Nvidia are up 5.8% at 286.6 dollars in early trading. They have risen more than 22% this year and by 85% over the past 12 months.

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