BUSINESS – Nvidia stunned Wall Street once again with a quarter that left analysts scrambling to keep up, adding more than $400 billion in market value on the strength of results that reassured investors AI demand isn’t slowing down anytime soon. According to CNBC, the chipmaker’s shares jumped Thursday as its revenue guidance for the current quarter signaled continued strength across its AI business.
The numbers themselves tell a striking story. Nvidia posted adjusted earnings of $2.22 per share, comfortably ahead of the roughly $2.09 analysts had penciled in, while revenue landed at $96.2 billion against expectations closer to $92.4 billion. That figure represents more than double what the company brought in during the same quarter a year earlier, when revenue sat near $46.7 billion. Data center revenue, which makes up the bulk of Nvidia’s AI-driven business, came in at $89 billion, also topping the roughly $85.7 billion Wall Street had forecast.
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CEO Jensen Huang used the earnings release to frame just how dramatically the competitive landscape has shifted over the past year. “This time last year, one lab alone was driving the buildout,” he said, contrasting that with what he described as the current environment. “Today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online.” He added elsewhere that AI has “reached its inflection point,” pointing to compute increasingly translating directly into revenue.
Reaction on trading desks matched the enthusiasm baked into those numbers. “The valuation today is cheap,” Siddy Jobe, senior portfolio manager at Econopolis Wealth Management, told CNBC’s “Squawk Box Europe,” adding there was still “plenty, plenty of upside” left in the stock. Paul Meeks of Freedom Capital Markets echoed that sentiment on “Squawk Box Asia,” saying he remained bullish on both Nvidia and the wider ecosystem surrounding it.
The rebound carries extra weight given what preceded it. Chip stocks broadly had shed roughly $1 trillion in value back in July before clawing their way back, leaving investors nervous about whether the AI trade still had legs. Thursday’s results appear to have settled that question for now, restoring confidence that the artificial intelligence buildout still has considerable room to run.