NVIDIA Corporation saw its stock price surge past $185 on Friday as investors continued to pile into the AI chipmaker following another blowout earnings report.
Record Data Center Revenue
The company reported data center revenue that exceeded analyst expectations by a wide margin, driven primarily by demand for its H100 and newer Blackwell GPU architectures. Major cloud providers including Microsoft, Amazon, and Google have been racing to secure NVIDIA hardware to power their AI infrastructure.
Supply Constraints Easing
CEO Jensen Huang noted during the earnings call that supply constraints that had plagued the company throughout much of last year are beginning to ease, allowing NVIDIA to fulfill a larger portion of its massive order backlog.
"The next industrial revolution has begun," Huang said. "Companies and countries are partnering with NVIDIA to shift the trillion-dollar installed base of traditional data centers to accelerated computing."
Analyst Upgrades
Several Wall Street firms raised their price targets following the results, with Goldman Sachs maintaining a Buy rating and increasing its target to $220. Morgan Stanley called the quarter "another proof point" for the AI infrastructure buildout thesis.
The stock is now up over 40% year-to-date, making it one of the best performers in the S&P 500.
