Rtx Stock

NVIDIA (Rtx) Stock Soared 14%

Rtx Stock Soared 14% After Q4 Earnings Beat

Nvidia (NVDA) stock soared 14% in extended trading on Wednesday after the chipmaker reported better-than-expected fourth-quarter earnings.

The company reported earnings per share of $0.88, beating analysts' estimates of $0.81. Revenue came in at $7.64 billion, also ahead of estimates of $7.4 billion.

Nvidia's Data Center Business Shines

Nvidia's data center business was a key driver of growth in the quarter. Revenue from this segment grew 31% year-over-year to $3.62 billion.

The company's artificial intelligence (AI) chips are in high demand from cloud computing providers and other businesses that are using AI to power their operations.

Gaming Revenue Dips, But Still Strong

Nvidia's gaming revenue declined 46% year-over-year to $1.83 billion. However, this was still above analysts' estimates of $1.6 billion.

The decline in gaming revenue was due to a number of factors, including the global chip shortage and the release of new consoles from Sony and Microsoft.

Outlook for 2023

Nvidia provided a strong outlook for 2023. The company expects revenue to grow by 25% to $33.6 billion.

This growth will be driven by continued demand for Nvidia's data center and AI chips. The company also expects to benefit from the launch of new products, including its next-generation graphics cards.

Analysts' Reactions

• Bank of America: "Nvidia's Q4 results were impressive, driven by strength in data center and AI. We believe the company is well-positioned for continued growth in 2023."
• Citigroup: "Nvidia's earnings beat was a positive surprise. We are raising our price target on the stock to $250."
• Morgan Stanley: "Nvidia's data center business is a key growth driver for the company. We believe the stock is undervalued and has upside potential."

Conclusion

Nvidia's strong fourth-quarter earnings and positive outlook for 2023 have sent the stock soaring. The company's data center and AI businesses are key drivers of growth.

Analysts are bullish on Nvidia's stock, and they believe that the company is well-positioned for continued growth in the years to come.