Nvidia Stock Nears Record High
In the midst of a remarkable run, Nvidia’s stock is on the brink of reaching an all-time closing high as the chipmaker’s shares surged by 0.8% in Thursday morning trading, reaching $953.83. The company’s previous record high was $950.02, achieved on March 25, demonstrating the momentum and investor confidence surrounding Nvidia.
Anticipation for First Quarter Earnings
As Nvidia prepares to release its first quarter earnings report next week, Wall Street analysts are closely monitoring the company’s performance. Expectations are high, with a FactSet poll forecasting first quarter revenue to reach $24.5 billion. However, KeyBanc equity research analyst John Vinh holds an optimistic view, projecting revenue figures of $26 billion for the first quarter and setting second quarter guidance at around $28.5 billion.
“Despite anticipation of next-generation Blackwell GPUs in the second half, we see limited signs of a demand pause and expect Nvidia to report first-quarter results and second-quarter guidance meaningfully above expectations,” Vinh expressed in a research note.
Impact on CEO Compensation
Achieving a record-high share price would not only reflect positively on Nvidia’s financial performance but also have implications for the company’s CEO, Jensen Huang. Huang recorded a total compensation of $34.2 million for fiscal year 2024, marking a significant 60% increase from the previous fiscal year. Stock awards played a crucial role in this compensation boost, with Huang earning $26.7 million in stock awards for fiscal year 2024.
Impressive Stock Performance
Throughout the year, Nvidia’s stock has exhibited exceptional growth, boasting a remarkable 99% increase year-to-date. Following the company’s strong fourth quarter earnings report in February, which saw revenue surge to $22 billion, Nvidia’s shares experienced a notable rally. Despite a brief setback prior to the earnings report, the stock has made a remarkable comeback and is up an impressive 226% over the last 12 months, highlighting the market’s confidence in Nvidia’s future prospects.
In conclusion, Nvidia’s stock is on a trajectory towards historic highs, driven by strong financial performance, optimistic analyst projections, and exceptional leadership under CEO Jensen Huang.
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