When Nvidia announced earnings results that exceeded market expectations in its performance announcement immediately after the market close the previous day, its stock price soared by nearly 25% in the regular market.
As a result, the market cap is approaching $1 trillion, and it is expected that it will become the first company in history to exceed $1 trillion in market cap among global semiconductor companies.
On the 25th (local time), Nvidia soared 24.37% from the previous trading day to $379.80 on the New York Stock Exchange.
Nvidia reported earnings per share of $1.09 for the last quarter in its earnings report the previous day. This is above the market expectation of 92 cents. It announced sales of $7.19 billion. This is also far above market expectations of $6.52 billion.
In particular, earnings prospects were good. Nvidia said it expects about $11 billion in revenue for the quarter. This is well above market expectations of $7.15 billion.
“The computer industry is undergoing two simultaneous transformations: accelerated computing and generative AI,” CEO Jensen Huang said in an earnings call. “We are seeing a surge in demand for chips, especially for generative AI,” he added.
“This market will reach $1 trillion as companies are eager to apply generative AI to all their products, services and business processes,” he predicted.
When Nvidia announced these results, its share price soared by 28% in after-hours trading, and the regular market closed at $379.80, up 24.37%.
As a result, Nvidia’s market cap recorded $939.2 billion, making it one of the world’s top five companies by market cap.
Nvidia boasted that it ranked 5th in market cap after Apple, Microsoft, Google’s parent company Alphabet, and Amazon.
In addition, Nvidia is expected to surpass the $1 trillion market cap for the first time among semiconductor companies.
So far, no semiconductor company has exceeded $1 trillion in market cap. Intel, the leading semiconductor company in the United States, also has a market cap of only $114.2 billion.
Ravindra Jill, an analyst at Needham, a securities firm, recommended buying Nvidia, saying, “Nvidia is likely to become the first semiconductor company to break the $1 trillion market cap.”
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.