Nvidia expects AI chip demand to bring about a "giant record year"
Nvidia Corporation (NASDAQ:NVDA) reported first-quarter earnings after yesterday's close, and the results are helping prop up the tech-heavy Nasdaq Composite (IXIC). The semiconductor giant's earnings of $1.09 per share and revenue of $7.19 billion surpassed Wall Street's estimates, with the company issuing a better-than-expected revenue outlook for the fiscal second quarter as well, noting it expects a "giant record year" amid higher artificial intelligence (AI) chip demand.
Shares roared out of the gate this morning, opening at a new all-time high of $385.99. Last seen 24.2% higher at $379.25, NVDA now boasts a more than 162% year-to-date lead.
The options pits are booming with activity, too. Already, 631,000 calls and 382,000 puts have exchanged hands, which is six times the intraday average volume. New positions are opening at the top three most popular contracts, led by the weekly 5/26 400-strike call -- an indicator that some traders are expecting even more upside for Nvidia stock.
More than 20 analysts upped their price targets on NVDA, including Wedbush and Craig-Hallum, who also upgraded it to "outperform" and "buy," respectively. Ahead of the event, the majority of analysts were already bullish on the security.