Nvidia headquarters in Santa Clara, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
With its breathtaking surge Thursday, Nvidia could soon land a spot in probably the most elite Wall Street club, practically overnight.
The chipmaker saw its shares surge 25% on Thursday, bringing its market value to slightly below the $1 trillion mark at around $951 billion per FactSet. It was $755 billion at Wednesday’s close.
Nvidia would develop into the fifth publicly traded U.S. company to be currently price $1 trillion. Apple created the club in 2018. Microsoft, Alphabet and Amazon also now hold the excellence.
Trillion-dollar market cap club and Nvidia
| Symbol | Name | Market Value (000s) | YTD % | 2023 Est. Revenue (Billions) |
|---|---|---|---|---|
| AAPL | Apple Inc. | 2,702,820.0 | 32.3 | 384,748.7 |
| MSFT | Microsoft Corporation | 2,333,628.0 | 30.9 | 211,434.1 |
| GOOGL | Alphabet Inc. Class A | 1,539,535.0 | 37.0 | 299,810.2 |
| AMZN | Amazon.com, Inc. | 1,197,896.0 | 39.0 | 559,661.3 |
| NVDA | NVIDIA Corporation | 951,419.3 | 122.0 | 30,426.5 |
Source: FactSet
“Back in late 2021, we began publishing work suggesting Nvidia would develop into the primary semiconductor company with a trillion dollar market cap,” Needham analyst Rajvindra Gill said in a note Thursday. “While there was some peaks and valleys within the interim years, we imagine Nvidia is ready to attain that valuation over time.”
That point might be as early as Thursday.
Nvidia’s long run stock price
All eyes on are on Nvidia after it forecast $11 billion in sales for the second quarter of its fiscal 2024 late Wednesday, citing demand for its graphics processors that power artificial intelligence applications just like the ones at Google, Microsoft and ChatGPT maker OpenAI. That forecast blew away Wall Street and turned the AI hype driving the stock into real results.
“Customers are ‘racing’ to satisfy large language models (LLMs) and generative AI based demand across all major modalities,” Gill added. “We see nearly all past headwinds behind us, and expect the corporate is shipping to true, AI-related demand, near-term.”
The corporate’s shares were already up 108% for the yr ahead of Thursday’s session. Nvidia’s shocking sales guidance – greater than 50% above the $7.15 billion analysts anticipated for the quarter – has catapulted its market cap forward almost overnight.
Nvidia (NVDA) YTD
Bank of America’s Vivek Arya said Nvidia’s current-quarter outlook hike is the most important it has seen in its coverage and that its market cap is on a path to “1 trillion and beyond.”
Arya and a number of other other analysts Thursday raised their price goal on the stock – with one seeing as much as 64% upside from where it closed Wednesday.
