By Justin Pei
Rochester — Shares of computer chip-maker Nvidia jumped after the company posted better than expected fourth-quarter earnings after being down for four straight quarters. Nvidia reported revenue of $3.11 billion, ahead of Wall-Street estimates of $2.96 billion.
The strong forecast fuels expectations of a rebound in computer chip demand. Additionally, this also led to a rise in Non-GAAP net income of $1.172 billion, up 6% compared to 2019, a 136% total gain year on year.
This is despite the company lowering estimates for its revenue outlook by $100 million to account for expected losses caused by the coronavirus in China. Nvidia’s stock rose 7% premarket Friday and gained 6% to $287.35 in after-hours trading on the stock market.
Nvidia Chief Executive Officer Jensen Huang stated that revenue gained from sales of graphics processors for data centers fueled its better-than-expected Earnings with growing AI needs in the market.
Nvidia’s stock surge has kept the Nasdaq Composite positive with an increase of 0.063% or 5.85 points while the S&P 500 and Dow Jones have barely moved.