Thursday’s breathtaking surge could soon earn Nvidia a spot in Wall Street’s most elite club almost overnight.
The company’s shares surged 25% on Thursday to a market value of more than $974 billion, just under $1 trillion, according to FactSet. It closed Wednesday at $755 billion.
Nvidia It is now the fifth U.S. public company to be worth $1 trillion. apple The club was established in 2018. microsoft, alphabet and Amazon It still retains that distinction today.
NVIDIA and the Club with a Multi-Trillion Dollar Market Cap
|symbol||name||Market Value (000s)||YTD %||2023 Projected Revenue (Billions)|
|Alphabet Inc. Class A||1,539,535.0||37.0||299,810.2|
sauce: fact set
“Back in the second half of 2021, Nvidia has begun releasing papers suggesting it could become the first semiconductor company with a $1 trillion market cap,” Needham analyst Rajvindra Gill said in a note on Thursday. . “There have been some peaks and valleys in that time, but we believe NVIDIA is well positioned to achieve that rating over time.”
That time could be as early as Thursday.
Nvidia’s long-term stock price
All of that as Nvidia predicted late Wednesday sales of $11 billion in the second quarter of fiscal 2024, citing demand for graphics processors that power artificial intelligence applications like Google, Microsoft and ChatGPT maker OpenAI. All eyes are on NVIDIA. The prediction blew up Wall Street, turning AI hype driving stock prices into real results.
“Customers are ‘racing’ to meet large-scale language model (LLM) and generative AI-based demand across all major modalities,” Gill added. “We believe that nearly all past headwinds are behind us, and the company expects to meet true AI-related demands in the near future.”
The company’s shares were already up 108% year-to-date ahead of Thursday’s trading. Nvidia’s shocking sales outlook (which puts him more than 50% above analysts’ expectations for the $7.15 billion for the quarter) sent the company’s market cap up almost overnight.
NVIDIA (NVDA) YTD
Bank of America’s Vivek Aria said Nvidia’s outlook hike this quarter was the largest the company has reported, putting the company’s market cap on the “trillion and beyond” mark. Stated.
Aria and several other analysts raised their price target on the stock on Thursday, with one analyst expecting the stock to rise as much as 64% from Wednesday’s close.