Nvidia has become as much of a buzzword as AI recently. Powered by demand for artificial intelligence, the company reported a rosy revenue forecast for its current quarter in addition to a double-beat on its Wednesday night earnings.
And investors rejoiced.
(NVDA) stock jumped 30% in after-hours trading, increasing its market cap to just under $1 trillion.
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"We’ve never seen a quarter like this, in 25 years of doing this, across any of my coverage," Morgan Stanley analyst Joseph Moore told CNBC. "Certainly, it's an expensive stock, but it’s also rarified territory of the one company that can put up a number like this. It’s a really impressive performance. The move, as big as it is, is consistent with just how good these results are."
Moore added that the AI-led surge is one that will last.
"The strength that we’re seeing in AI is a fundamental trend that we see as having legs for multiple years," he said. "This is an important platform shift in the market. These AI investments are really the trend. And there’s really one company that benefits from it. It’s a very impressive growth outlook and one that doesn’t appear to be a one-quarter thing."
Moore acknowledged that, over time, Nvidia will face competition. But right now, no company is really leveraged to compete with them, something that Nvidia CEO Jensen Huang alluded to on the earnings call.
"Our delivery-to-operations is measured in weeks. We’ve taken data centers and supercomputers and turned them into products," Huang said, mentioning that success here comes down to data center expertise, something Nvidia has.
"I think our market is of course very competitive, very large," he said, "but the challenge is really, really great."
