NVIDIA Becomes Only the Second Stock Ever to Record a One-Day Increase in Market Capitalization of Over $200 Billion
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NVIDIA's President Jensen Huang has declared that the "age of AI is in full throttle." Indeed, when looking at the company's scorching-hot stock price gains, it seems that investors have fully embraced NVIDIA as the poster child of the ongoing AI revolution.
For those who might be unaware, NVIDIA disclosed earnings for the first quarter of its fiscal year 2024 yesterday. The company reported quarterly revenue of $7.19 billion, beating consensus expectations by 13 percent. Similarly, NVIDIA reported an upbeat adjusted EPS of $1.09, exceeding the consensus estimate of $0.92.
However, the true shocker for investors was NVIDIA's blowout guidance, with the company expecting to record an adjusted gross margin of between 69.5 percent and 70.5 percent in its fiscal Q2 2024. For reference, analysts had expected this metric to hover around 66.9 percent. The company also expects to record Q2 2024 revenue of $11 billion (plus or minus 2 percent). This blowout guidance was a whopping 55 percent above the prevailing consensus estimate of $7.1 billion.
$NVDA going to disrupt this list of biggest one-day market cap gains in history pic.twitter.com/NCqZPbBw8t
— Mike Zaccardi, CFA, CMT
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