Nvidia has shattered records, hitting the unprecedented $2 trillion market value milestone propelled by the explosive demand for chips fueling generative artificial intelligence (AI) applications. This remarkable achievement follows yet another stellar revenue forecast, propelling the company’s market worth by an astonishing $277 billion in a single day – marking the largest single-day gain ever recorded on Wall Street.
The meteoric rise of Nvidia over the past year has drawn comparisons to suppliers during the 1800s gold rush era. Nvidia’s chips have become indispensable, powering nearly every player in the generative AI space, from trailblazers like OpenAI, the brains behind ChatGPT, to tech behemoths like Google.
This surge has catapulted Nvidia’s market value from $1 trillion to an unprecedented $2 trillion in just eight months, making it the fastest appreciation among US companies – a feat accomplished in less than half the time it took industry giants like Apple and Microsoft.
In the words of Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, “For today’s AI companies – the industry leaders – what will be crucial for them will not be the demand. It will simply be their ability to meet the growing demand.”
How is the Nvidia´s Stock Market Now ?
Nvidia’s shares saw a staggering 4.9% surge, reaching a record-breaking $823.90 at the session’s outset, following a jaw-dropping 16% surge on the preceding day. Year-to-date, Nvidia’s stock has surged nearly 60%, building on its already impressive performance in 2023 when it more than tripled in value.
The latest revenue forecast, exceeding market expectations of 233% growth in the first quarter, not only bolstered Nvidia’s position but also buoyed global markets to new heights.
The unprecedented growth has captivated analysts and investors worldwide, with Nvidia’s results dominating discussions and attracting significant attention from European fund managers and beyond.
Despite the surge, Nvidia’s valuation has moderated due to rapidly escalating analyst estimates. The company now boasts a forward price-to-earnings ratio of approximately 31 times, down from 49 times a year ago, according to data from LSEG.
As Brian Colello, Strategist at Morningstar, aptly puts it, “The major cloud computing companies plan to increase their investments to meet demand for AI training and inference, and it looks like virtually all of these expenditures will fall into Nvidia’s pockets.”
Looking ahead, analysts predict continued growth for Nvidia, with revenue projected to increase by several billion dollars each quarter throughout fiscal year 2025 as more chip supply becomes available.
This unprecedented surge underscores Nvidia’s pivotal role in driving the AI revolution and positions the company at the forefront of innovation in the tech industry.
As Nvidia continues to redefine the boundaries of what’s possible in AI, the tech world eagerly awaits the next chapter in this remarkable success story.
