Nvidia Earnings Are a Win for Artificial Intelligence
Stocks rose on Thursday led by a rally from Nvidia after a positive quarterly earnings report.
Quick overview
- Investor confidence in artificial intelligence increased as Nvidia exceeded quarterly earnings expectations, leading to a 2.4% rise in its stock.
- Nvidia reported earnings of $57 billion for the third fiscal quarter, surpassing the anticipated $55 billion and achieving an EPS of $1.30.
- CEO Jensen Huang dismissed concerns about an AI bubble, emphasizing the growth potential and essential role of AI in future business operations.
- The Nasdaq Composite index rose 2.24%, driven by strong tech stock performance, with the S&P 500 also seeing significant gains.
Investor confidence in artificial intelligence rose this week as Nvidia (NVDA) beat quarterly earnings expectations and their stock rose 2.4%.
Nvidia earned $57 billion in its third fiscal quarter and topped earnings expectations. The anticipated revenue for the quarter was closer to $55 billion. They also beat earnings per share estimates of $1.25 with an EPS of $1.30.
This MVP of publicly traded companies is also the leading artificial intelligence company, and if they can do well in that niche, then there is room for other companies to perform well. Fears over the AI market forming a bubble and then bursting soon may have been allayed by Nvidia’s earnings report.
No Bubble, Says Nvidia CEO
When asked recently about the possibility of an AI bubble, Nvidia’s CEO Jensen Huang said that he sees something very different. Huang says his company has a unique vantage point in the market, and where outside investors may feel like there are limited applications for AI and a contracting market, Nvidia foresees the possibilities for growth and expansion. He said that AI is going to open the door to completely new applications and they will remove the need for much user input in many business operations.
He also sees that the tech market needs AI to continue operating as it does, so there is no risk that artificial intelligence will simply fade away. It is too essential to business operations as they are now and will likely be even more vital in the future.
The Nasdaq Composite index rose 2.24% on Thursday as the market opened, led by a strong performance from tech stocks. The Dow Jones increased by 1.40%, and the S&P 500, with its partial tech focus, was up by an incredible 2.92% for the morning. We may not be seeing a tech rally yet, but a lot of recent losses have been wiped clean, and many stocks are trading near record highs at this point in the week.
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