Nvidia has become a buzzword like artificial intelligence lately. Buoyed by demand for artificial intelligence, the company reported rosy revenue forecasts for the current quarter as well as a double-dip on Wednesday night’s earnings.
Investors rejoiced.
(NVDA) – Get a free report The stock jumped 30% in after-hours trading, boosting its market value to just under $1 trillion.
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“We’ve never seen a quarter like this, in the 25 years of doing this, across any of my coverage,” Morgan Stanley analyst Joseph Moore told CNBC. “Sure, it’s an expensive stock, but it’s also a rare area for one company to be able to put up a number like that. It’s a really impressive performance. This move, as big as it is, is in keeping with how good these results are.”
And the AI-led increase will continue, Moore added.
“The strength that we’re seeing in AI is a fundamental trend that we’re seeing as having legs for several years,” he said. “This is an important platform shift in the market. These AI investments are really the trend. And there’s really one company that’s benefiting from it. It’s a very impressive growth forecast that doesn’t look like a quarter.”
Moore acknowledged that over time, Nvidia will face competition. But right now, no company has actual leverage to compete with them, something Nvidia CEO Jensen Huang hinted at on the earnings call.
“Delivery to operations is measured in weeks. We’ve taken data centers and supercomputers and turned them into products,” Huang said, noting that success here comes down to data center expertise, something Nvidia has.
“I think our market is of course very competitive, very big, but the challenge is really big,” he said.