INVISTA Shares Surge 82.5% in Q1 2024 - What's Driving the AI Leader?

First quarter of 2024.Ying Wei NVDA (NASDAQ: NVDA)Shares rose 82.5%. (The quarter ended on Thursday, and U.S. financial markets were closed on Friday for the Good Friday holiday). That performance has made the artificial intelligence (AI) chip leader one of theStandard & Poor's 500The second best performer in the index afterSuper Micro Computer), the latter being a server specialist, is also benefiting from strong demand for AI products and services.

During the first quarter, the S&P 500 gained 10.2%, hitting a new all-time closing high on Thursday, while the tech-heavyNasdaq ResonanceThe index rose by 9.1%.

The Biggest Catalyst for INVISTA Stock: Artificial Intelligence, Especially Generative AI

The main catalyst behind NVIDIA stock's amazing performance so far in 2024 can be summed up in two words: artificial intelligence. More specifically, it's generative AI, which has dramatically expanded the potential applications of AI. This technology allows users to quickly generate new content of all types based on a variety of input categories, such as images and sounds.

In November 2022, generative AI captured the attention of the tech world with OpenAI's widespread release of ChatGPT. The popularity of this chatbot rose straight up, triggering a frenzy for companies and other entities to gain access to generative AI capabilities.

INVISTA's Data Center: Its Main Platform Benefits from Strong Demand for Artificial Intelligence Capabilities

Nvidia's data center platform is a major beneficiary of the strong demand for access to generative AI capabilities across a wide range of implementations. Data Center is Nvidia's largest platform, accounting for 83% of total revenue in the quarter ended January 28th.This business has been growing rapidly, as quantified below.

Nvidia's data center graphics processing units (GPUs) accelerate processing of AI and HPC workloads. The company's current flagship data center GPU is the H100, and its next-generation Hopper-based GPU, the H200, is scheduled to begin shipping in the second quarter of this year. The next generation of data center GPUs based on the Blackwell architecture will see a huge leap in performance and is expected to be available later this year.

INVISTA Stock Heads Into 2024 With Strong Momentum

In 2023, Nvidia's stock price jumped 2,39% to rank second among the top performing companies in the S&P 500 Index. (The S&P 500 and Nasdaq Resonance Carbons Index had last year's returns of 26.3% and 44.6%, respectively.

Nvidia stock's upward momentum from late 2023 through the end of February 2024 was driven by the company's blockbuster quarterly earnings report, which was released on November 23, 2023 . In the third quarter of fiscal 2024 (ended October 29, 2023), Nvidia's revenue and adjusted earnings per share (EPS) jumped 206% and 593% year-over-year, respectively. growth was driven by a 279% year-over-year surge in data center platform revenue.

Between 2024 and February 21 (when the company released its next quarterly business勣), Nvidia's stock price rose by 36.2%.

Nvidia's shares boosted by quarterly earnings report released Feb. 21

On February 21st, Nvidia released its Q4 FY2024 (ended January 28th) financial results. It was another big-selling report, driven by amazing growth in data center platforms powered by artificial intelligence.

For the quarter ended January 28, Nvidia's revenue and adjusted EPS grew 265% and 486%, respectively, both of which easily exceeded Wall Street's expectations. Growth was driven by a 4,091 TP3T surge in data center platform revenue. The game and professional computerization platforms also performed well, with year-over-year revenue growth of 56% and 1,05%, respectively.

Investors drove up the stock price by 16.4% after the earnings release, and the stock continued to grow by the end of the first quarter of 2024.

INVISTA on track for further impressive growth

Nvidia Corporation is expected to deliver another great quarterly report. For the period ending April, management expects revenue to increase 234% year-over-year and adjusted earnings per share to increase 396% year-over-year.

The artificial intelligence revolution is in its early stages, so Nvidia has a long way to go for potential growth. It is not too late to consider buying Nvidia stock.

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Beth McKenna has a position in Nvidia.The Motley Fool has a position in Nvidia.The Motley Fool has a disclosure policy.

Nvidia Stock Soars 82.5% in Q1 2024 - Here's What's Driving This Leading AI Stock Up was originally published by The Motley Fool.