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Nvidia headquarters in Santa Clara, Calif., on Tuesday, February 23, 2021.
David Paul Morris | Bloomberg | Getty Images
With its jaw-dropping surge on Thursday, Nvidia could soon land a spot in Wall Street’s most elite club virtually overnight.
The chipmaker saw its shares jump 25% on Thursday, taking its market value from just under $1 trillion to over $974 billion, per FactSet. It was $755 billion at Wednesday’s close.
Nvidia would become the fifth publicly traded US company currently worth $1 trillion. Apple created the club in 2018. Microsoft, Alphabet And Amazon also now hold the distinction.
Trillion Dollar Market Cap Club and Nvidia
| Symbol | Name | Market value (in thousands) | YTD % | 2023 East. Turnover (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: set of facts
“At the end of 2021, we started publishing work suggesting Nvidia would become the top semiconductor company with a trillion-dollar market capitalization,” Needham analyst Rajvindra Gill said Thursday in a rating. “While there have been ups and downs over the intervening years, we believe Nvidia is able to achieve this valuation over time.”
That moment could be as early as Thursday.
Nvidia’s long-term share price
All eyes are on Nvidia after forecasting $11 billion in sales for the second quarter of its fiscal year 2024 on Wednesday night, citing demand for its graphics processors that power artificial intelligence applications like those from Google, Microsoft and the maker of ChatGPT OpenAI. This forecast blew Wall Street and turned the AI hype fueling the stock into actual results.
“Clients are racing to meet large language models (LLMs) and generative AI-based demand across all major modalities,” Gill added. “We see almost all of the headwinds of the past behind us, and we expect the company to meet the real demand for AI, in the near term.”
Shares of the company were already up 108% for the year before Thursday’s session. Nvidia’s shocking sales forecast — more than 50% above analysts’ forecast of $7.15 billion for the quarter — catapulted its market capitalization almost overnight.
Nvidia (NVDA) since the beginning of the year
Bank of America’s Vivek Arya said Nvidia’s uptick in current-quarter outlook is the biggest the company has seen in its coverage and the company’s market capitalization is on track to “1 trillion and beyond”.
Arya and several other analysts raised their price target on the stock on Thursday – with one seeing as much as 64% upside from its Wednesday close.