Nvidia predicts AI chip demand will lead to an exceptional year.
Nvidia Corporation (NASDAQ:NVDA) posted its Q1 earnings after yesterday’s close, and the results have boosted the tech-heavy Nasdaq Composite (IXIC). The chipset giant exceeded Wall Street’s forecasts with earnings of $1.09 per share and revenue of $7.19 billion. Additionally, the company has provided a better-than-expected outlook for Q2. It predicts a “giant record year” due to the increase in demand for artificial intelligence (AI) chips.
The company’s shares surged this morning, opening at a new all-time high of $385.99. Currently, they are 24.2% higher at $379.25, providing an over 162% year-to-date lead for NVDA.
The options market has experienced a surge in activity. 631,000 calls and 382,000 puts have already been traded, six times the average daily volume. Traders opened new positions in the top three contracts, mainly in the weekly 5/26 400-strike call. It is an indication that some traders anticipate the stock will have further upside.
Over 20 analysts have raised the price targets for NVDA, including Wedbush and Craig-Hallum. The analysts have upgraded their recommendations to “outperform” and “buy,” respectively. Before the earnings report, most of the analysts held a bullish outlook for the company’s stock.