Nvidia’s stock has experienced a significant surge, rising nearly 30% over the last two weeks, adding approximately $750 billion to its market capitalization. This boost has contributed to a broader rise in the Nasdaq, lifting it more than 7% from its recent low in early August.
Nvidia’s recovery follows a previous decline that wiped out $900 billion in market value, but the company’s role in the AI sector has made its stock a key indicator of the health and enthusiasm surrounding AI technologies.
The company’s rebound has been influential enough to support eight-day winning streaks for both the Nasdaq and the S&P 500, which ended recently. A ninth consecutive gain for the S&P 500 would have marked the longest streak in two decades, highlighting the significant impact Nvidia’s stock performance has on the broader market.
Despite this recent success, Nvidia’s stock showed some volatility, being flat in pre-market trading after a slight decline of about 2% in the previous session. With a market capitalization of $3.13 trillion, Nvidia ranks behind only Apple and Microsoft in terms of company value, underscoring its prominent position in the tech industry.
Nvidia is part of the “Magnificent Seven” group of tech giants, which includes Apple, Alphabet, Microsoft, Amazon, Meta, and Tesla. Together, these companies have added $1.4 trillion to their market caps over the past eight trading days, representing nearly half of the S&P 500’s total market cap gain during that period. This demonstrates the outsized influence these tech companies, particularly Nvidia, have on the overall market.
Looking ahead, Nvidia is set to release its second-quarter earnings report, which is eagerly anticipated by analysts and investors. The company’s recent history of delivering exceptional results, including record first-quarter revenue of $26 billion and a stock price surpassing $1,000 for the first time, has set high expectations. Nvidia’s performance continues to be seen as a key indicator of the broader AI industry’s growth and potential.
