SUMMARY
- Nvidia's shares saw an unprecedented 24% increase, beating consensus estimates and setting a new record high for the company.
- From a two-year low, Nvidia's stock has rallied an impressive 235%, outperforming all other S&P 500 companies during the same period.
- Analysts are bullish on Nvidia's outlook, with JPMorgan doubling its price target, highlighting the company's strong position as an AI chip supplier.
In a stunning display of market prowess, Nvidia's shares skyrocketed by a notable 24% following a sterling earnings report, thereby setting a new record high for the company. This impressive feat unfolded on a Thursday, marking a victorious end to the trading day.
This new record surpassed the previous one set in November 2021 when Nvidia's share price closed over $333. A thunderous opening at $385 set the stage for the day, and although some of the overnight gains were lost, the company's strength remained unshaken. The comparison is noteworthy: Nvidia's stock ascended by an astounding 235% since hitting its two-year low of $112 in October, surpassing the performance of any other company on the S&P 500 during that period. The social media giant, Meta, could only claim the second spot with a 97% gain.
The overnight increase had the chipmaker's market cap primed to open at an astounding $975 billion, a result of a 30% jump in after-hours trading the preceding Wednesday. Nvidia's first-quarter adjusted earnings per share were a healthy $1.09, against a Refinitiv consensus estimate of 92 cents. Furthermore, its first-quarter revenue was a strong $7.19 billion, notably exceeding the consensus estimate of $6.52 billion.
This market phenomenon wasn't solely due to the favorable figures. Nvidia's position as a leader in AI chip supply and its promising projection of $11 billion in sales for the ensuing period were instrumental in propelling its shares further.
The exhilarating rise in share price nudged Nvidia towards the coveted trillion-dollar valuation club—a feat achieved by only a few companies like Apple, Alphabet, Amazon, Saudi Aramco, Tesla, Meta, and Microsoft. Swift reactions from analysts followed this development, with JPMorgan doubling its price target from $250 to $500 and reiterating its overweight rating.
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