Nvidia headquarters in Santa Clara, California. Photographer: Michaela Vatcheva/Bloomberg Listen to the Big Take podcast on iHeart, Apple Podcasts, Spotify and the Bloomberg Terminal. Read the transcript.
“The company is printing money at this point,” Stacy Rasgon an analyst at Sanford C. Bernstein said. “And the prospect for continued growth from here still seems solid.”
Nvidia shares surged after it reported blowout results that cemented Wall Street bets on the potential for its artificial intelligence technologies. The chipmaker also gave guidance above expectations, driven by AI spending at its biggest customers, including Microsoft Corp. and Meta. A series of estimate-beating results means the shares have been getting cheaper on a price-to-earnings basis.
Read: What Bubble? Nvidia Profits Are Rising Even More Than Its Stock
Nvidia surpassed high expectations, according to Morgan Stanley analyst Joseph Moore. “We had never seen $2 billion+ of upside to quarterly revenue guidance until Nvidia did it a few quarters ago, but it has become routine during the AI surge,” he wrote. “Strength of AI demand continues to be remarkable.”