Nvidia shares pop on Q4 earnings, generative AI "hits tipping point"

• Total revenue for the fourth quarter was $22.1 billion, up 22% from the previous quarter and up 265% from a year ago.

What they're saying: "Accelerated computing and generative AI have hit the tipping point," CEO Jensen Huang said in a statement. "Demand is surging worldwide across companies, industries and nations."

Context: Nvidia made more this quarter from data center revenue than it did in the entirety of its previous quarter.

The impact: Nvidia shares popped over 6.5% initially in after-hours trading.

The big picture: Nvidia stock, treated as a proxy for AI demand, is now the most-traded by value — dethroning Tesla for the title.

• The company, before a sell-off earlier this week, was the third most valuable company by market cap behind Microsoft and Apple.

• More than $1.2 trillion of its market cap has been added in the past 12 months.

What others are saying: Goldman Sachs' trading desk has called it "the most important stock on planet earth," per Bloomberg.

What we're watching: Commentary from Huang on how much more growth the company is expecting from Big Tech, as well as clues to any supply constraints.