Nvidia Makes History By Gaining $227 Billion Valuation In Single Day; Becomes Largest Market Cap Addition Ever

Nvidia's record-breaking surge in share price and market capitalization is driven by impressive financial results. Reasons suggest a strong demand for AI technologies.

Updated on Feb 24, 2024  |  03:34 PM IST |  36.4K
NVIDIA witnesses record-growth in stocks
NVIDIA witnesses record-growth in stocks ( Twitter )
Key Highlight
  • Nvidia's share price surged to an all-time high, adding $277 billion
  • The company's fourth-quarter revenue of $22.10 billion

Nvidia, the renowned chipmaker, has recently witnessed an unprecedented surge in its share price, reaching an all-time high on Thursday. This surge has led to a remarkable increase in the company's market capitalization, setting a new record for the most significant single-session gain in history. This surge has even outpaced the historic gain made by Meta Platforms just three weeks ago.

Analyst’s take

The surge in Nvidia's share price comes on the heels of the company's impressive financial results. Nvidia reported blowout results that have solidified Wall Street's confidence in the company's artificial intelligence technologies. 

The company's guidance also surpassed Wall Street estimates, driven by increased AI spending from its major customers, including Microsoft Corp. and Meta.

Morgan Stanley analyst Joseph Moore commented on Nvidia's performance, stating that the company has consistently exceeded high expectations, particularly in the realm of AI demand. He noted that Nvidia's ability to deliver such strong results has become routine during the AI surge, reflecting the remarkable strength of AI demand.


Financial figures

For the fourth quarter, Nvidia reported revenue of $22.10 billion, a significant increase from the previous year's $6.05 billion. This figure surpassed Wall Street estimates of $20.62 billion. Adjusted for certain items, fourth-quarter earnings were $5.16 per share, compared to estimates of $4.64 per share.

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Looking ahead, Nvidia has forecasted first-quarter revenue growth of 233%, exceeding Wall Street's expectations of 208% growth. The company expects first-quarter revenue to reach $24.0 billion, plus or minus 2%, while analysts expect revenue of $22.17 billion on average. Additionally, Nvidia anticipates a first-quarter adjusted gross margin of 77%, plus or minus 50 basis points, surpassing analysts' average forecast of 75.6%.

Nvidia's record-breaking surge and impressive financial performance underscore the company's position as a leader in the AI space. As demand for AI technologies continues to grow, Nvidia is well-positioned to capitalize on this trend and deliver strong results for its investors.

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FAQ

What factors contributed to Nvidia's record-breaking surge?
Nvidia's impressive financial results and strong demand for its AI technologies drove the surge in its share price and market capitalization.

What are Nvidia's first-quarter revenue and adjusted gross margin forecasts?
Nvidia forecasts first-quarter revenue of $24.0 billion, plus or minus 2%, and an adjusted gross margin of 77%, plus or minus 50 basis points.

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Shovan has a Masters in Mass Communication and Journalism degree from Calcutta University. He loves to live in the

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