NVIDIA stock price surges above $1,000 as company reports homerun earnings

NVIDIA, the world’s leading graphics processor manufacturer, just wrapped up its first quarter earnings report by announcing that sales completely exceeded expectations, pushing the company’s stock above the $1,000 per share mark.

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The new financial report showcased NVIDIA’s extraordinary achievement. The company’s revenue for the first three months that ended in April rose to an impressive $26 billion, surpassing the expected $24 billion set in February. This is the third quarter in a row in which NVIDIA tripled its sales compared to the previous year, demonstrating the company’s rapid growth.

The explosive growth can be largely attributed to the widespread adoption of AI-based systems by tech giants such as Google, Meta, Amazon, OpenAI and others, further cementing NVIDIA’s position as a key player in this space.

Moreover, NVIDIA’s net revenue increased sevenfold to $5.98 billion, with the company also reporting that revenue guidance for the current quarter ending in July will be $28 billion, more than double the company’s forecast a year ago.

To illustrate how much NVIDIA has grown and dominated the GPU market in both gaming and enterprise, NVIDIA’s stock has surged over 90% since the beginning of the year, peaking only after its earnings report at $1,016 per participation. Moreover, NVIDIA achieved a profit of $14 billion in a single quarter thanks to its dedicated AI GPUs.

What is the reason for this? The boom in AI-based tools and their adoption by major tech companies as the next wave of new technologies spread to the masses has put NVIDIA in a very lucrative position as the company produces what is widely considered to be the best processors to power and train AI systems .