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Nvidia shares increase following stronger-than-anticipated earnings, boosting AI-related cryptocurrency stocks.
The AI bellwether announced $68 billion in revenue last quarter, anticipating it to rise to $78 billion in the upcoming quarter.
Nvidia logo (modified by CoinDesk)
What to know:
- Nvidia surpassed fourth-quarter forecasts, recording revenue exceeding $68 billion.
- Shares increased by 1.4% during Wednesday’s trading session and rose 3% in after-hours trading.
- Bitcoin held steady above $69,000 near session highs, while AI-related crypto tokens TAO, ICP, and AI-focused bitcoin mining stocks experienced slight gains following the announcement.
Nvidia (NVDA), recognized as the largest publicly traded company by market value and a key indicator for the AI industry, again exceeded Wall Street projections for the fourth quarter, releasing its findings after the U.S. markets closed on Wednesday.
The semiconductor manufacturer outperformed expectations, disclosing revenue of $68.1 billion, representing a 73% rise compared to the previous year, as ongoing AI-related capital investments drove substantial demand for its chips. Additionally, it reported adjusted earnings per share of $1.62, surpassing predictions. Analysts on Wall Street had anticipated Nvidia to announce approximately $66.1 billion in revenue and $1.54 in adjusted EPS, according to FactSet data.
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Following the earnings report, shares saw an increase of nearly 3% during after-hours trading on Wednesday.
Investors are now directing their attention toward guidance. Nvidia forecasts first-quarter revenue to be around $78 billion, surpassing analyst expectations of $72.9 billion, thereby setting the stage for the next phase of AI-driven expansion.
The chip-making leader also indicated that its Data Center revenue for the fourth quarter reached a record $62.3 billion, a 75% increase from the previous year and a 22% rise from the prior quarter, driven by “major platform shifts – accelerated computing and AI.”
In the wake of the results and projections, bitcoin remained at session highs near $69,500, following a 10% increase from Tuesday’s lows. AI-focused crypto tokens such as Bittensor (TAO) and Internet Computer (ICP) continued to build on their gains.
Crypto miners, increasingly associated with AI and high-performance computing infrastructure, also registered modest gains following Nvidia’s report. IREN (IREN), Cipher Digital (CIFR), and TeraWulf (WULF) were up by 1%-2% in after-hours trading.
The company will conduct a conference call at 5 p.m. ET, where investors will be attentively listening for further indications regarding the next phase of the AI infrastructure development.
