NVIDIA is on track to best Meta Platforms’ historic stock-market session, just three weeks after the Facebook owner set the record.
Shares in the chipmaker surged 14 per cent, putting it on course to add more than US$230 billion to its market capitalisation. That would be the biggest single-session increase in market value in history, eclipsing a US$197 billion gain made by Meta at the start of the month.
“The company is printing money at this point,” Stacy Rasgon an analyst at Sanford C Bernstein said. “And the prospect for continued growth from here still seems solid.”
Nvidia shares surged after it reported blowout results that cemented Wall Street bets on the potential for its artificial intelligence technologies.
The chipmaker also gave guidance above expectations, driven by AI spending at its biggest customers, including Microsoft and Meta. A series of estimate-beating results means the shares have been getting cheaper on a price-to-earnings basis.
Nvidia surpassed high expectations, according to Morgan Stanley analyst Joseph Moore. “We had never seen US$2 billion+ of upside to quarterly revenue guidance until Nvidia did it a few quarters ago, but it has become routine during the AI surge,” he wrote. “Strength of AI demand continues to be remarkable.” BLOOMBERG
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