Technology

Nvidia shares surge after strong fourth quarter results

Shares of Nvidia have surged after the chipmaker posted strong fourth quarter results earlier this week.

Nvidia, a leading manufacturer of the graphics processing units (GPUs) typically used for artificial intelligence (AI) models, saw its shares jump 16 percent Thursday and had climbed another 3 percent as of midmorning Friday.

The surge followed the company’s release of its fourth quarter results Wednesday evening, which beat Wall Street’s expectations, according to CNBC.

Nvidia posted a record quarterly revenue of $22.1 billion, up 22 percent from the previous quarter and 265 percent from one year earlier, it said in a press release.

“Accelerated computing and generative AI have hit the tipping point,” Jensen Huang, the founder and CEO of NVIDIA, said in a statement. “Demand is surging worldwide across companies, industries and nations.” 

The chipmaker’s upward climb brought the stock market along with it. The S&P 500 jumped 2.1 percent Thursday, while the Dow Jones Industrial Average rose 1.2 percent or about 450 points. Both closed at record highs, according to Reuters.