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Nvidia's stock price hits record high due to profit forecasts
STORY: Nvidia stock soared to an all-time high in after-hours trading on Wednesday after quarterly revenue was expected to beat market expectations. The semiconductor giant expected second-quarter sales to reach $28 billion, plus or minus 2%, more than analysts expected. First-quarter sales rose 262% year over year to more than $26 billion, also exceeding market expectations. CEO Jensen Huang said Nvidia's next Blackwell AI chip will be shipped in the current quarter, with production ramping up in the next quarter. The company said it expects demand for these chips to outstrip supply “until next year.” Nvidia has more than 80% of the market share for AI chips, and its customers include companies such as Facebook's parent company Meta. Analysts expect the company's high-performance products to maintain a strong position in the market amid fierce competition in artificial intelligence development. The California-based company also announced a stock split and dividend hike on Wednesday. Shares of the leading AI company are up 90% so far this year. Wednesday's news could also help push up the prices of rival chip makers, giving new momentum to a stock market rally that has pushed indexes to record highs.
