This company is indispensable in the digital everyday lives of many people. The Nvidia Corporation is a leading manufacturer of IT hardware. The company designs, develops, and markets graphics and media communication processors and similar software for PCs, workstations, and digital entertainment platforms. Currently, the company is experiencing an incredible rally in its stock price. Will this continue after the quarterly earnings?

Nvidia sees huge increase in revenue and profits. In the fourth quarter, the company reported earnings of $5.16 per share, up from $0.88 in the previous year. Analysts had expected $4.64. Revenue also reached a record high of $22.1 billion, up from $6.05 billion in the previous year. Analysts had expected $20.6 billion.

Demand for AI is increasing globally. „Accelerated Computing and generative AI have reached a turning point,“ said Chief Executive Jensen Huang. „Demand is increasing globally in companies, industries, and nations.“

Forecast exceeding analyst expectations. The company forecasted revenue of $24 billion for the current quarter, exceeding the average analyst estimate of $22.17 billion.

Can Nvidia reach $1,400? Conclusion: This chart trend is truly incredible. After the quarterly earnings, the stock broke to a new record high. In the past 5 years, the stock has risen by over 1,800%. Despite the massive increase, analysts see further potential. 55 out of 59 analysts recommend buying and 4 recommend holding. The average analyst price target is $868, with the highest target at an astonishing $1,400. However, it is important to note that after such enormous price increases, corrections can also occur. And the current P/E ratio is high at 62, but is expected to decrease to 31 next year due to strong expected earnings growth.