Taps Coogan – August 24th, 2023
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The following article is reposted from Statista.com:
Ever since Nvidia revealed how much it expects to profit from the AI hype in its first-quarter earnings in May, the chipmaker has been riding a wave of investor euphoria. There were still some question marks as to whether the company could actually deliver on its promise though. Having shown little more than an incredibly bullish outlook back in May, the company’s second-quarter earnings, due on Wednesday, were considered a make-or-break moment for the AI-fueled market rally. In the end, Nvidia overdelivered, surpassing even the sky-high expectations it had set three months ago. On Thursday, the company’s share price opened at $502.16, a new all-time high, cementing its status as a full member of the trillion dollar club.
After seeing its market cap jump more than $180 billion in one of the largest single-day gains ever on May 25, the company had officially joined the exclusive club of mega cap stocks in mid-June, when its share price closed at $410.22 on June 13, raising its market capitalization to $1,013 billion. Since then, Nvidia’s market cap never fell below the $1-trillion threshold, but doubts over its high valuation remained. Until yesterday’s blowout earnings that is. As of market open today, the chipmaker’s market cap amounted to $1.23 trillion, up a whopping 250% from just over $350 billion at the beginning of the year, when the sentiment surrounding Nvidia was everything but euphoric.