After a rough day, Nvidia (NVDA) is pushing higher.
In fact, in after-hours, the NVDA stock is up about $6.50. All on the news Microsoft increased spending on equipment to offer AI-powered features to corporate customers.
“We will continue to invest in our cloud infrastructure, particularly AI-related spend, as we scale to the growing demand driven by customer transformation,” Chief Financial Officer Amy Hood said. She also guided for “capital expenditures to have a material sequential impact on a dollar basis driven by investments in Azure AI infrastructure.”
Even better for NVDA – which could push it above $300 – NVDA founder and CEO Jensen Huang says he expects revenue from generative AI to be “quite large- exactly how large, it’s hard to say,” as quoted by MarketWatch.com.
Plus, analysts over at Erste Group just upgraded NVDA to a buy, noting that sales in NVDA’s data center segment will “increase sharply due to the increased use of AI in many areas of life.” They also noted that “NVIDIA simply offers the most powerful products ever for this important application area. Revenue and profit growth will accelerate significantly in 2024.”
