Nvidia’s earnings call on Wednesday exceeded all market expectations, with sales surging above $68 billion in the last quarter. The fourth quarter results calmed the AI bubble fears, bringing optimism back to the tech sector. Nvidia stock climbed nearly 2% during the day’s trading session and is now close to the $200 mark.
Apart from Nvidia, the broader tech stocks experienced an uptick on Wednesday. Microsoft soared 3%, Meta 2.25%, Amazon 1%, and Apple 0.8%, and all of them remained in the green. CEO Jensen Huang said in the upbeat earnings call that the fears of AI being a bubble have ended.
“I think the markets got it wrong,” he said, while pushing back on fears that the AI sector is a bubble. He argued that AI will not cannibalize the software industry, but rather utilize it more effectively. “Agentic AI will use software tools even more, boosting efficiency,” he said. The development has calmed down the tensions in the stock market, and Nvidia is leading the way.
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NVDA Stock: Nvidia’s Upbeat Earnings – Optimism Soars Back
Nvidia stock is again in the spotlight for all the right reasons after the earnings call. The majority of traders took an entry position in February after being confident in NVDA’s prospects. There was market chatter that the tech giant would generate revenues worth billions. It beat expectations and went further in sales and revenues. This puts the software industry on the right track amid a tumultuous year.
Traders are expecting Nvidia stock to climb above the $200 mark next due to the optimism. NVDA could carry itself above the range as the market is now brimming with confidence. It is best to take an entry position in NVDA under the $200 price range. A rally could be expected in the coming months for the equity.