Nvidia stocks surpass $1000 a share after blockbuster results

Growth fuelled by demand for AI chips

Nvidia shares topped $1000 for the first time yesterday after it's Q1 fiscal results surpassed high expectations.

The results exceeded even the higher end of analyst expectations and stock rose 7% in extended trading. Shares fell back to under $1000 to close but are expected to reach similar highs when markets open today.

Nvidia's results were indicative of the incredible demand for AI chips. Revenue is up 262% from a year before, datacentre revenues increased by 427%, and adjusted earnings per share increased by 461%.

Analysts expected fiscal Q1 revenue of around $24.6 bn but the company reported $26 billion. Adjusted gross margins reached a record level of 78.9%

The high process recorded yesterday won't last that long as Nvidia plans a 10-for-1 stock split early next month.

Chief Executive Jensen Huang said in a statement yesterday:

"The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence," said Jensen Huang, founder and CEO of NVIDIA. "AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.

"Our data center growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform. Beyond cloud service providers, generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets."

During the earnings call, Chief Financial officer Colette Kress dispelled any idea that demand for the H200 (part of the Hopper chip range) would drop off in advance of the full availability of Blackwell.

"Demand for H200 and Blackwell is well ahead of supply and we expect demand may exceed supply well into next year," Kress said on call.

The Nvidia results also spurred growth in other chip stocks, although less dramatic. AMD, Broadcom, Marvell and Arm Holdings all saw growth of approximately 2 – 3% through the day.