Nvidia shares soar: market capitalization increases by more than $200 billion a day to nearly $1 trillion

CTOnews.com May 25 news, Nvidia on Wednesday announced the first quarter of fiscal 2024 earnings,$7.19 billion in revenue exceeded market expectations by 13%. Nvidia also gave a forecast for second-quarter sales 50% higher than Wall Street estimates, pushing the company's after-hours share price up to become the fifth-largest U.S. company by market capitalization.

Nvidia shares closed yesterday at $305.38, with a market cap of $755.24 billion. As of this writing CTOnews.com, the stock is trading at $396.03. This equates to a market capitalization of $979.43 billion. That means nvidia's market cap has increased by $224.19 billion in just a few hours, the second-largest single-day gain in history after petrochina's $597 billion gain on november 5, 2007. It is worth mentioning that Nvidia's share price rise continues.

Goldman Sachs told Nvidia that this may be the best TMT (technology, media and telecommunications) earnings report we have seen since Zoom (ZM) in June 2020. JPMorgan doubled its price target on Nvidia's stock to $500 from $250, citing "tremendous demand growth."

Nvidia founder CEO Huang Renxun said the sales growth was mainly due to the "surge in demand" for data center products. This is driven by the recent AI boom. Companies compete to use NVIDIA chips to train and deploy generative AI applications like ChatGPT.

Huang said Nvidia has turned to companies that sell entire AI supercomputing systems, not just a chip company, to large companies that are willing to pay higher prices for Nvidia products in order to gain AI capabilities comparable to Silicon Valley technology companies.