Nvidia headquarters in Santa Clara, Calif., Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
With Thursday’s astonishing surge, Nvidia could claim a place among Wall Street’s most elite clubs almost overnight.
Shares of the chipmaker soared 25% on Thursday, pushing its market capitalization closer to the $1 trillion mark, or about $951 billion per share, according to FactSet. It closed at $755 billion on Wednesday.
Nvidia It will become the fifth U.S. public company with a current market capitalization of $1 trillion. Apple created the club in 2018. Microsoft, Alphabet and Amazon are also now famous.
The Trillion Dollar Club and Nvidia
| the symbol | Name | Market Value (000s) | YTD% | 2023 East. Revenue (billions) |
|---|---|---|---|---|
| NASA | Apple Inc. | 2,702,820.0 | 32.3 | 384,748.7 |
| Microsoft Corporation | Microsoft Corporation | 2,333,628.0 | 30.9 | 211,434.1 |
| Alphabet Inc. Class A | 1,539,535.0 | 37.0 | 299,810.2 | |
| amazon | Amazon | 1,197,896.0 | 39.0 | 559,661.3 |
| Nvidia | Nvidia | 951,419.3 | 122.0 | 30,426.5 |
source: fact set
“As early as late 2021, we are starting to post work suggesting that Nvidia will be the first trillion-dollar semiconductor company,” Needham analyst Rajvindra Gill said in a note Thursday. Some peaks and troughs, but we believe Nvidia has the ability to deliver on this valuation over time.”
That time could be Thursday at the earliest.
Nvidia’s long-term share price
Late Wednesday, Nvidia forecast sales of $11 billion in the second quarter of its fiscal 2024, citing demand for its graphics processors, which power artificial intelligence technologies such as Google, Microsoft and ChatGPT maker OpenAI. Apps power. The prediction took Wall Street by surprise and turned the AI hype that drove up stock prices into real results.
“Customers are in a ‘race’ to satisfy the needs of large language model (LLM) and generative AI based in all major modalities,” Gill added. “We see nearly all past headwinds behind us and expect the company to address real demand related to AI in the near term.”
The company’s shares had risen 108% this year before Thursday’s trading session. Nvidia’s stunning sales guidance — which was more than 50 percent higher than analysts’ expectations of $7.15 billion for the quarter — pushed its market value higher almost overnight.
Nvidia (NVDA) YTD
Bank of America’s Vivek Arya said Nvidia’s outlook upgrade for the current quarter was the largest it has ever reported, with its market cap heading toward “a trillion and beyond.”
Arya and several other analysts raised their price targets on the stock on Thursday — with one seeing a 64% upside from Wednesday’s close.