NVIDIA Gains Almost the Entire Market Cap of AMD Following Stellar Earnings and a Cascade of Stock Price Upgrades

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NVIDIA National Day - a euphemism for the criticality of the GPU manufacturer's earnings in sustaining the AI-driven gravy train - managed to deliver on the hype, with the company posting another shocker guidance that has sent a euphoric thrill across the halls of finance on Wall Street.

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As we noted yesterday, NVIDIA (NASDAQ: NVDA) reported $22 billion in revenue for the last quarter against expectations of $20.6 billion. Additionally, the company announced a non-GAAP EPS of $5.16 vs consensus expectations of $4.64.

NVIDIA currently has a gross margin of 76 percent - an astounding feat in a very competitive industry.

To grasp the scale of AI-related tailwinds that are keeping NVIDIA shares afloat right now, note that the company's data center segment reported quarterly revenue of $18.4 billion vs. just around $3.6 billion in the comparable quarter last year.

Of course, it was NVIDIA's guidance for the ongoing quarter that proved to be the icing on the proverbial cake. The GPU manufacturer now expects to earn $24 billion, give or take 2 percent, in the current quarter, which is significantly above analysts' prior estimate of $22.01 billion.

During the earnings call, NVIDIA's CEO noted that the demand for the company's newest products will continue to "outstrip supply" for the rest of 2024. Moreover, the GPU maker now expects the world's installed base of data centers to double over the next five years.

These stellar earnings have now prompted almost all of the Wall Street analysts to increase their respective stock price targets for NVIDIA.

Citi analysts noted that NVIDIA's margins have improved materially on the back of increased sales of the H100 chip. While the Biden administration's export restrictions have hammered the