Nvidia shares hit a new peak after forecasts showed strong demand for AI chips

Nvidia caused a stir in the tech market when its stock price jumped more than 9% on Thursday after reporting profits that beat Wall Street forecasts. This shows that demand for its artificial intelligence (AI) chips remains extremely strong. The company’s data center revenue increased by 427% last quarter.

Nvidia stock price surpassed the $1,000 mark for the first time, reaching a high of $1,037.99. Their previous peak was $953.86 set on May 21.

Nvidia’s first-quarter revenue reached $26.04 billion, higher than LSEG’s estimate of $24.65 billion. And this need remains unabated.

The company issued strong guidance, projecting revenue of $28 billion in the current quarter, surpassing LSEG’s estimate of $26.61 billion.

Despite some analysts’ concerns about a temporary slowdown, others were even more bullish on Nvidia following its results. Bernstein’s Stacy Rasgon raised the company’s price target to $1,300, writing in a note to investors that the story surrounding the company “is clearly not over, or likely to have peaked yet.” point.” He added that Nvidia’s stock appears to be undervalued.

Jefferies also raised its price target on Nvidia stock to $1,350 due to the strong performance of its new AI graphics processor called Blackwell and predicted an acceleration to “outperformance” by the end of the year. now when this platform launches.

Nvidia’s net profit reached $14.88 billion, equivalent to $5.98 per share, up sharply from $2.04 billion, equivalent to 82 cents per share, in the same period last year.

On Wednesday, Nvidia announced a 10-1 stock split, with shares starting to trade adjusted for the split at the opening session on June 10.