Nvidia Corp (NASDAQ:TSM) won the Street with its upbeat quarterly results and guidance.
The Taiwanese semiconductor manufacturer reported a revenue of $19.62 billion in the fourth quarter, a slight decrease of 1.5% compared to last year, yet surpassing the expected $19.45 billion Thursday. With earnings per share (EPS) at $1.44, it exceeded the anticipated $1.37.
For the fiscal year 2024, Taiwan Semi anticipates revenue growth ranging from low to mid-20%. The company has set a capital expenditure budget between $28 billion and $32 billion for FY24, compared to the $30.45 billion spent in 2023.
The optimistic outlook from Taiwan Semiconductor Manufacturing Co on capital spending and revenue growth led to a significant increase in semiconductor stock values, with companies like Tokyo Electron Ltd and Nvidia adding over $160 billion in market value, Bloomberg reports.
According to Wedbush analysts, Taiwan Semi’s confidence in near-term fundamentals has significantly improved, buoyed by expectations of AI’s increasing contribution and better prospects for traditional end markets in 2024.
Meanwhile, on Thursday, Meta Platforms Inc (NASDAQ:META) CEO Mark Zuckerberg announced a significant investment in Nvidia’s AI chips, focusing on building a robust computing infrastructure.
This plan includes acquiring 350,000 H100 graphics cards from Nvidia by 2024’s end, with an estimated expenditure of nearly $9 billion, as the H100 cards are priced between $25,000 and $30,000.
Nvidia stock gained 241% last year versus the broader index Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) at 50%.
Price Actions: NVDA shares traded higher by 1.66% at $580.50 premarket on the last check Friday. AMD shares traded higher by 1.70% at $165.44.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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