Ahead of Nvidia (NVDA) posting quarterly results, artificial intelligence stocks rallied on Wednesday. Broadcom (AVGO), Intel (INTC), and Micron (MU) rose on the day. Nvidia did not disappoint the markets. After the market closed, CEO Jensen Huang said that AI is advancing at light speed.
Blackwell’s AI server is the bright spot. Overall, revenue jumped by 78% Y/Y to $39.33 billion. Non-GAAP EPS was $0.89. During the fourth quarter, Nvidia said that Blackwell production started, while Hopper 200 sales continued to grow sequentially. It sold 11 billion dollars worth of Blackwell products, meeting the strong demand. This is the fastest product ramp in Nvidia’s history.
The Consumer Internet unit posted a triple percentage revenue growth rate, thanks to a higher need for generative AI. Deep learning use cases, such as vision language understanding, synthetic data, agentic AI, and generation search all led to the higher growth rates. Nvidia said on its conference call that xAI adopted the GB200 product to train its next generation of AI models. In addition, Meta Platforms (META) runs its Andromeda advertising on Nvidia’s Grace Hopper Superchip.
Your Takeaway
The stock market largely priced in the outstanding results. If stocks pull back to the $110 - $115 range in the weeks ahead, consider building a position in NVDA stock.
