Nvidia shares rise as blowout revenue forecast cements AI lead
Shares of Nvidia rose on Thursday after the chipmaker forecast an upbeat second-quarter revenue and announced a stock split that floored investors and once again showcased its dominance in the AI-related chips market.
The company's stock rose 6.5% in premarket trading, with rival AI-related chipmakers Advanced Micro Devices, Broadcom and Micron Technology also gaining between 2% and 3%.
The poster child of AI chips forecast fiscal second-quarter revenue of $28 billion, plus or minus 2%, with analysts on average expecting revenue of $26.66 billion, according to LSEG data.
Wall Street's third most valuable firm, Nvidia has surged almost 92% this year and is set to gain about $165 billion in market cap at current price levels of $1,016.
If it closes above $1,000 on Thursday, it would mark the first time Nvidia's stock has climbed above that psychologically important threshold.
«The stock price will certainly reach $1,000 per share, but whether it can maintain that level is uncertain,» said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Nvidia also said it would split its stock ten-for-one, effective June 7, and raised its quarterly dividend by 150% on a post-split basis.
The Santa Clara, California-based company's chips are the gold standard in artificial intelligence and its results are widely seen as a barometer for the burgeoning AI industry, whose evolution has stoked investor enthusiasm and helped drive the bull run in U.S. stocks.
«You can't help feeling Nvidia left a lot of gas in their tank to
