Nvidia Corp. seems poised to surpass Meta Platforms Inc.’s recent stock-market session record, achieving this milestone just three weeks after the social media giant set the bar.
The chipmaker experienced an impressive 14% surge in its shares, potentially adding over $230 billion to its market capitalization. If realized, this surge would mark the most significant increase in market value during a single trading session in history, surpassing Meta’s $197 billion gain earlier this month.
Stacy Rasgon, an analyst at Sanford C. Bernstein, emphasized Nvidia’s financial success, stating, “The company is printing money at this point,” expressing confidence in its sustained growth prospects.
The surge in Nvidia’s shares was driven by the announcement of stellar financial results, solidifying Wall Street’s optimism about its artificial intelligence technologies. The company not only exceeded expectations but also provided guidance that surpassed market forecasts.
This positive outlook is attributed to increased spending on artificial intelligence by major clients such as Microsoft Corp. and Meta. Nvidia’s consistent trend of surpassing estimates has made its shares more attractive on a price-to-earnings basis.
Joseph Moore, an analyst at Morgan Stanley, acknowledged that Nvidia not only met but exceeded high expectations. He noted, “We had never seen $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,” emphasizing the remarkable demand for artificial intelligence.
Nvidia’s outstanding performance underscores the widespread optimism surrounding the potential of its AI technologies. This surge in market value positions Nvidia as a leader in the industry, with its technologies being adopted by major players like Microsoft and Meta.
The consistent surpassing of revenue guidance adds a layer of reliability to Nvidia’s success story, making it an increasingly attractive investment. As Nvidia continues to demonstrate robust financial performance and the demand for AI remains strong, the company’s outlook appears promising.
Its consistent growth and resilience suggest that it is not merely a short-term success but a key player in the ongoing AI revolution. Investors and analysts are closely monitoring Nvidia’s trajectory, anticipating further developments and advancements in the realm of artificial intelligence.
