chip manufacturer Nvidia’s strong earnings It resulted in an unprecedented stock price rally in the history of the company and the history of the U.S. stock market.
Stock in the California-based company 28% increase As a result of after hours trading Far exceeded my expectations Yesterday (May 24th).If the profit holds up when the market opens today (May 25), the company will additional $219 billion Its current market cap reached $755 billion in a single day, breaking Apple’s November 2022 market cap record. $191 billionto leap.
Nvidia CEO Jensen Huang said the company is “seeing a surge in demand” for its data center products amid the rise of accelerated computing and generative AI. May 24 press release. The company’s strong performance has not only boosted its own stock, but also that of other AI-related companies, including rival chipmaker Advanced Micro Devices and generative AI enthusiasts. microsoft and googleAI software makers C3.ai and Palantir Technologies.
But will it last?face that Game business strugglesand experts are cautiously optimistic about AI initiatives in the enterprise.
One of the big numbers: Nvidia’s huge market capitalization
$974 billion: According to Bloomberg, a sustained surge in the stock price would increase Nvidia’s market capitalization, widening its gap as the world’s most valuable chip maker. Another $50 billion would put him past the trillion-dollar clubs. 5 members At the moment they are Apple, Saudi Aramco, Microsoft, Alphabet and Amazon. Tesla and Meta join the long-awaited club for 2021, has since been removed from the list.
Quote: Is NVIDIA’s Stock Rise Sustainable?
“[T]AI hype will inevitably normalize in the coming months as the focus returns to currently subdued demand under the current macroeconomic climate, and the structural recovery recently priced into Nvidia shares. optimism may weaken. Until the cyclical tailwinds return, optimism about long-term AI-driven growth trends will be difficult to prevail as a structural driver of valuations. ”Libby Investment Research in March 2023
Looking Back: Apple’s $191 Billion Surge
On November 10, 2022, Apple’s $190.9 billion profit broke the record for the largest one-day gain by a US public company. According to Bloomberg.The rise came on the back of optimistic data pointing to US inflation colder than expected October spurred a broader market rally, and Apple benefited. The previous record is held by Amazon, whose stock surged $190.8 billion in a single day in February of the same year.
Chart: Largest one-day gain in U.S. stocks
Target company: PetroChina Co., Ltd.
Globally, Nvidia is nowhere near breaking the stock price record. Chinese oil and gas company PetroChina, the listed arm of state-owned China National Petroleum Corporation (CNPC), also added. about $600 billion First trading day in Shanghai in November 2007.
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