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Nvidia clobbers earnings expectations as AI demand hits ‘tipping point’; stock up 6%

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Nvidia Corp. saw revenue more than triple in the latest quarter and topped expectations by nearly $2 billion, and its shares rose in Wednesday’s extended session.

The chip giant has benefited from frenzied spending on artificial-intelligence hardware, and that was on display again Wednesday as the company reported fiscal fourth-quarter results. Revenue came in at $22.1 billion, up from $6.05 billion a year before, while analysts had been modeling $20.4 billion.

Data-center revenue at Nvidia
NVDA,
-2.85%

rocketed more than 400% from a year before to hit $18.4 billion, while the FactSet consensus was for $17.06 billion.

Nvidia forecasts continued strong growth for the ongoing quarter, well above expectations. The company is calling for $24.0 billion in revenue, up from $7.2 billion a year prior, while analysts were modeling $22.2 billion.

Shares of Nvidia were up about 6% in after-hours trading Wednesday.

“Accelerated computing and generative AI have hit the tipping point,” Chief Executive Jensen Huang said in a release. “Demand is surging worldwide across companies, industries and nations.”

Read: The AI boom of today and the telecom bubble of 1990s share these similarities

Nvidia posted fiscal fourth-quarter net income of $12.3 billion, or $4.93 a share, compared with $1.4 billion, or 57 cents a share, in the year-earlier period. On an adjusted basis, the company earned $5.16 a share, while analysts were projecting $4.59 a share.

See also: Stocks owned by Nvidia saw surge in bullish bets days before filing sparked massive rally

The company saw a 56% year-over-year rise gaming revenue for the latest quarter, with that total coming in at $2.9 billion. The FactSet consensus was for $2.7 billion.

Nvidia generated $463 million in professional visualization revenue, up 105%, along with $281 million in automotive revenue, down 4%. Analysts were looking for $422 million and $275 million, respectively.

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