Global Courant 2023-05-31 00:08:18
Nvidia reached a market cap of $1 trillion on Tuesday open, joining a small club of mostly technology companies. Nvidia’s shares must be above $404.86 to maintain that distinction all day long.
The stock returned some of its gains in late afternoon trading, holding on to a new 52-week high but falling back to just below the $1 trillion valuation.
Shares of the chipmaker skyrocketed last week after it released quarterly earnings with top and bottom-line numbers significantly beating consensus estimates. Nvidia’s gains supported other chipmakers, with the notable exception of Inteland was also fueled in part by estimates that were more optimistic than expected.
Significantly, Nvidia forecast revenue of $11 billion for the second quarter of fiscal 2024 alone. Expected revenue was 50% higher than consensus estimates of $7.15 billion.
It’s been a boom year for chipmakers, parts of the tech industry and the Nasdaq, driven in part by the artificial intelligence frenzy and the possibility of slowing rate hikes by the Federal Reserve. In addition to Nvidia, Alphabet, meta And Microsoft were also supported in last week’s trading.
Nvidia’s graphics processing units, or GPUs, are crucial to generative AI platforms like OpenAI’s ChatGPT and Google’s Bard. The company has historically been a leader in so-called discrete or standalone GPUs, but until recently many consumers thought GPUs were primarily used for intensive gaming.
The advent of crypto mining and AI has turned that belief on its head, and GPU manufacturers and suppliers, including Nvidia, Advanced micro devices And Taiwanese semiconductor manufacturinghave seen share prices rise significantly in recent months.
In contrast, Intel, which has struggled with inventory issues and development challenges, has traditionally focused on the chip market for central processing units, or CPUs. Relatively speaking, the company has not shared in the wave of investor interest.
Trillion dollar market cap club
Symbol Name Market value YTD % 2023 estimated. Turnover (billions) AAPL Apple Inc. $2.759 trillion36,4384,748.7MSFTMicrosoft Corporation$2.475 trillion38,9211,434,1GOOGLAlphabet Inc. class A$1.587 trillion40,83299,810,2AMZNAmazon.com, Inc. NVDANVIDIA Corporation$1.00 trillion 177,2330,426.5
Source: Fact Set
Nvidia’s market cap on Tuesday morning places it alongside a handful of other companies, including Apple, Alphabet, Amazon and Microsoft, valued at $1 trillion or more. Nvidia shares were already up 166.5% so far before Tuesday’s open.
– CNBC’s Kif Leswing, John Melloy and Gina Francolla contributed to this report.
Clarification: This story has been updated to clarify that Nvidia forecast revenue of $11 billion for the second quarter of fiscal 2024.
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