Nvidia nears elite trillion-dollar market cap club of Apple, Microsoft, Alphabet and Amazon

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 the most elite Wall Street club, practically overnight.

The chipmaker saw its shares surge 26% on Thursday, bringing its market value to just under the $1 trillion mark at about $950 billion, per FactSet. It was $755 billion at Wednesday’s close.

Nvidia would become the fifth publicly traded U.S. company to be 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 (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 become the first semiconductor company with a trillion dollar market cap,” Needham analyst Rajvindra Gill said in a note Thursday. “While there was some peaks and valleys in the interim years, we believe Nvidia is in a position to achieve that valuation over time.”

That time could be as early as Thursday.

Stock Chart IconStock chart icon

Nvidia’s long term 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 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 meet 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 company is shipping to true, AI-related demand, near-term.”

The company’s shares were already up 108% for the year ahead of Thursday’s session. Nvidia’s shocking sales guidance – more than 50% above the $7.15 billion analysts anticipated for the quarter – has catapulted its market cap forward almost overnight.

Stock Chart IconStock chart icon

hide content

Nvidia (NVDA) YTD

Bank of America’s Vivek Arya said Nvidia’s current-quarter outlook hike is the largest the firm has seen in its coverage and that the company’s market cap is on a path to “1 trillion and beyond.”

Arya and several other analysts Thursday raised their price target on the stock – with one seeing as much as 64% upside from where it closed Wednesday.

For all the latest Technology News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.