Why Nvidia Stock Is Skyrocketing Today

Nvidia Corp. NVDA shares were rallying over 8% in premarket trading on Thursday.

Earnings Boost: The strength reflects the graphics chipmaker’s better-than-expected fourth-quarter results and its first-quarter guidance that came in above the consensus. The fourth-quarter performance came on the back of a rebound in gaming revenue after the steep drop in the third quarter. Datacenter held up fairly well despite fears of softness.

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Needham analyst Rajvindra Gill said he expects Datacenter growth to reaccelerate throughout 2024 and the rebound in gaming revenue to continue to reach the $2.5 billion “true demand” rate in the June quarter.

Additionally, Investors were optimistic over the AI-focus the company has adopted.

Sell-Side Savors Results: Reacting to the quarterly results, sell-side analysts raised their price targets for the shares:

  • Baird maintained its Neutral rating and increased the price target from $150 to $230.
  • Oppenheimer maintained an Outperform rating and hiked the price target from $250 to $275.
  • JPMorgan maintained an Overweight rating and increased the price target from $220 to $250.
  • Mizuho maintained a Buy rating and upped the price target from $200 to $230.
  • Barclays maintained a Buy rating and increased the price target from $250 to $275.
  • Piper Sandler maintained an Overweight rating and hiked the price target from $225 to $275.
  • Needham maintained a Buy rating and raised the price target from $230 to $270.

Price Action: In premarket trading, Nvidia shares were soaring 9.03%, to $226.29, according to Benzinga Pro data.

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