Synopsis: Nvidia's stock price jumped 13%, adding a record $330 billion in market value, driven by high demand for AI processors and favorable analyst ratings. The company's market valuation now stands at $2.88 trillion.
Nvidia's stock price surged nearly 13% on Wednesday, adding approximately $330 billion in market value in a record one-day gain for any company on Wall Street. This leap propelled Nvidia's share price to $117.02 per share, bringing the company's market valuation to $2.88 trillion, making it the third most valuable company on Wall Street, behind only Apple and Microsoft.
This record-breaking increase shattered Nvidia's previous record set on February 22, when the company gained $277 billion in market value. The highest ever closing market value for Nvidia was $3.34 trillion on June 18, according to data from LSEG.
Driving Factors Behind the Surge
The rally in Nvidia shares is driven by expectations of increased demand for its processors, particularly following Microsoft's report of a substantial rise in artificial intelligence expenditures on Tuesday. Additionally, Advanced Micro Devices (AMD) raised its 2024 forecast for AI chip sales, further boosting Nvidia's stock and other semiconductor companies.
Nvidia's stock also received a boost from Morgan Stanley analysts, who recently upgraded the stock to their "Top Pick" list following a recent sell-off from record highs in June. Morgan Stanley maintained its "Overweight" rating on Nvidia shares with a target price of $144, indicating a strong outlook for the company.
Performance and Outlook
Nvidia's share price has risen more than 140% in 2024, significantly outpacing the Nasdaq's 17% gains. The company's impressive performance reflects its strong position in the AI and semiconductor markets. Nvidia is set to release its next quarterly report on August 28, with analysts projecting nearly 10% growth in aggregated earnings for technology companies in the S&P 500, according to LSEG data.
Meanwhile, the Philadelphia Semiconductor Index surged 7%, marking its biggest one-day gain since 2022, though it remains 11% below its record high close on July 10.
Disclaimer
The views and recommendations expressed are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
