NVIDIA SHARE PRICE JUMPS 13%, ADDS RECORD $329 BILLION IN MARKET VALUE

Nvidia share price surged nearly 13% and added about $330 billion in stock market value on Wednesday, a record one-day gain for any company on Wall Street. Nvidia stock price jumped 12.81% to $117.02 per share, and is now valued at $2.88 trillion, making it the third most valuable company on Wall Street, behind Apple and Microsoft.

Nvidia’s market capitalisation surge shattered Wall Street’s previous record, which Nvidia also set on February 22 with a $277 billion gain, Reuters reported. Nvidia’s highest ever closing stock market value was $3.34 trillion on June 18, according to LSEG.

The rally in Nvidia shares comes on the back of expectations of high demand for its processors after Microsoft late on Tuesday reported a massive increase in artificial intelligence expenditures.

Moreover, Advanced Micro Devices ratcheted up its 2024 forecast for its AI chip sales, further fuelling gains in Nvidia stock price and other chipmakers.

Nvidia stock also got a boost after Morgan Stanley analysts elevated the stock to its ‘Top Pick’ after a recent sell-off from record highs reached in June.

Morgan Stanley believes the recent drop in Nvidia shares “presents a good entry point as we continue to hear strong data points short term and long term, with overblown competitive concerns.”

Morgan Stanley maintained its ‘Overweight’ rating on Nvidia shares with a target price of $144.

Nvidia share price has risen more than 140% in 2024 so far, outpacing the Nasdaq’s gains of 17%.

The company will release its next quarterly report on August 28. Analysts on average see technology companies in the S&P 500 growing their aggregated earnings by almost 10%, according to LSEG data.

Meanwhile, the Philadelphia Semiconductor Index index surged 7% in its biggest one-day gain since 2022. The index remains down 11% from its record high close on July 10.

(With inputs from Reuters)

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2024-08-01T02:49:53Z