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Nvidia's stock sees only marginal gains after better-than-expected results. Here's the latest
| USA | general | ✓ Verified - cnbc.com

Nvidia's stock sees only marginal gains after better-than-expected results. Here's the latest

#Nvidia #AI bubble #Earnings results #Stock performance #Data center revenue #Hyperscalers #Capital expenditure #Market concerns

📌 Key Takeaways

  • Nvidia exceeded Q4 revenue expectations with $68.13 billion, a 73% year-over-year increase
  • Data center division accounted for 91% of sales, bringing in $62.3 billion
  • Investor enthusiasm tempered by concerns about AI infrastructure sustainability
  • Nvidia issued bullish Q1 guidance projecting $78 billion in revenue

📖 Full Retelling

Nvidia CEO Jensen Huang announced better-than-expected fourth-quarter earnings results in the United States on Thursday, with the company's stock gaining only 1.3% in pre-market trading as investor concerns about the sustainability of the AI infrastructure boom dampened enthusiasm despite the positive financial performance. The semiconductor giant reported fiscal fourth-quarter revenue of $68.13 billion, surpassing analyst estimates of $66.21 billion according to LSEG, representing a 73% increase from the previous year. The muted market response came amid broader concerns about the AI sector, with hyperscalers seeing more than $1 trillion wiped from their market caps at the start of February, though some losses have been recovered in recent weeks. Nvidia's data center unit, which houses its market-leading chips, fueled its revenue boom, bringing in 91% of sales at $62.3 billion, exceeding expectations of $60.69 billion. The company issued an upbeat guidance with revenue for the fiscal first-quarter projected to be $78 billion, plus or minus 2%, significantly above analysts' forecast of $72.6 billion, marking the fourth straight quarter of accelerating growth.

🏷️ Themes

AI Investment Concerns, Market Response, Financial Performance, Technology Sector

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AI bubble

Ongoing theorised stock market bubble

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Nvidia

Nvidia

American multinational technology company

Nvidia Corporation ( en-VID-ee-ə) is an American technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, it develops graphics processing units (GPUs), systems on chips (SoCs), and application programming interfaces (APIs) for...

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In this article NVDA Follow your favorite stocks CREATE FREE ACCOUNT VIDEO 15:35 15:35 Watch CNBC's full interview with Nvidia CEO Jensen Huang after earnings and guidance beat Nvidia stock is up 1.3% in pre-market trading on Thursday, as investor concerns around the AI infrastructure boom dampened enthusiasm about its better-than-expected earnings. Revenue for its fiscal fourth-quarter hit $68.13 billion, ahead of analyst estimates of $66.21 billion, according to LSEG. Total revenue climbed 73% from the figure Nvidia reported a year ago and guidance also came in ahead of expectations. "The debate has shifted away from near-term results and toward the sustainability of AI capex spending, amid concerns around its quantum, monetisation and potential cashflow degradation," Richard Clode, portfolio manager at Janus Henderson Investors, told CNBC by email. Nvidia stock over the past year. Investor AI concerns Hyperscalers saw more than $1 trillion wiped from their market caps at the start of February, before paring those losses in recent weeks. Semiconductor AMD fell 17% after reporting guidance that topped expectations for many analysts earlier this month, though some had predicted a stronger outlook. "The market is currently fighting broad-based AI concerns," said Dan Hanbury, global strategic equity co-portfolio manager at Ninety One. "What is weighing heavy on investors' minds is how Nvidia can maintain its phenomenal growth rate now its core customers — the hyperscalers — are mostly depleting their cash flows, spending on AI-related capex." Data centers fuel growth Nvidia's data center unit, which houses its market-leading chips, fuelled its revenue boom, bringing in 91% of sales. Data center revenue came in at $62.3 billion for the quarter, ahead of expectations for $60.69 billion, according to StreetAccount. Nvidia issued an upbeat guidance with revenue for the fiscal first-quarter to be $78 billion, plus or minus 2%, well above analysts' forecast for $72.6 billio...
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