Nvidia Corporation’s strong Q4 results revived the artificial intelligence furore and seemingly drove a tech stock recovery. The chipmaker’s top and bottom lines outdid Wall Street predictions. Its quarterly revenue of $22.1bn reflected a quarter-on-quarter spike of 22%, and full-year revenues of $60.9bn jumped by 126%.
Nvidia sets the pace for tech stock
During after-hours trading on Wednesday, 21 February 2024, Nvidia’s stocks surged by 9.07%. The tech giant currently has a market value of approximately $1.7tn. According to Yahoo Finance, the Goldman Sachs Group Inc. (GS) said that Nvidia’s market performance causes a ripple effect, influencing other tech options. The bank typified this giant as the “most important stock on planet earth”.
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It seems to be a valid estimation as Nvidia drove approximately a third of the Nasdaq 100’s gain so far this year. Based on Yahoo Finance information, Bokeh Capital Partners LLC believes that tech will have another formidable year in the markets.
The firm’s chief investment officer, Kim Forrest, said:
As Nvidia goes, so goes the market. And it looks like the results are good enough. It does confirm the narrative that AI is going to continue to be strong for the foreseeable future. This narrative supported the markets last year, why wouldn’t it do the same this year?
The Carson Group echoed this viewpoint, stating that few “things are more certain than death, taxes, and Nvidia beats on earnings”. Just before the closing bell on 21 February, the S&P 500 bounced back as investors contemplated whether Nvidia’s Q4 results would resuscitate other tech market caps.
