Chip Maker Nvidia Shares Soar 14% As Imaginations For AI Future Run Wild

Nvidia stock skyrocketed Thursday after the Silicon Valley chipmaker smashed on earnings and boasted about its ability to cash in on the artificial intelligence craze, but one analyst says Nvidia's $70 billion single-day gain is unwarranted. Nvidia CEO Jen-Hsun Huang got $3 billion richer Thursday. Nvidia posted $6.1 billion in sales and $0.88 in profit per share over the last three months of 2022, each beating analyst expectations, and projecting it will beat sales estimates for the current quarter. But perhaps more important for investors was Nvidia leadership's focus on its AI business, with CEO Jensen Huang declaring in the Wednesday earnings call his company will be "the best AI salespeople [in] Nvidia shares surged 14% to just under $237, its highest level since April 2022. Investors can now "dream the dream" about Nvidia's long-term growth potential, Bernstein strategists led by Stacy Rasgon wrote in a Thursday note, upgrading its price target for Nvidia from $200 to $265, implying more than 10% further upside.