Nvidia stock price jumped 16% to $785.38 on Thursday, increasing the company’s market value by a staggering $277 billion in just a single day, setting a new record.
Nvidia’s total market capitalisation now stands at $1.89 trillion, making it the third-largest US company, trailing only behind tech giants Microsoft and Apple.
The rally in Nvidia shares comes after the world’s most valuable chipmaker reported better-than-expected fourth quarter earnings with another eye-popping sales forecast.
The addition of $277 billion in Nvidia’s market value on Thursday was its biggest single-session increase in history, eclipsing the $197 billion gain made by Facebook-parent Meta at the start of the month.
To put this monumental increase into perspective on a global scale:
- Nvidia's $277 billion surge in market value surpasses the combined market capitalization of all listed IT companies in India, which totals approximately $260 billion.
- It exceeds the market capitalization of India’s most valuable company, Reliance Industries, which is valued at approximately $240 billion.
- Moreover, the $277 billion surge is enough to fund the International Space Station for 57 years, based on its annual budget of around $4.8 billion.
- Additionally, this figure is also more than the combined market value of all publicly traded companies in Iceland, totaling approximately $240 billion.
Also Read: Bumper earnings from Nvidia could drive another stock market rally in US, say JPMorgan Chase traders
Nvidia's unprecedented market value increase reflects not only the company's strong financial performance but also its significant impact on the global market.
Nvidia’s fourth-quarter revenue jumped to $22.10 billion from $6.05 billion, beating estimates of $20.62 billion. Adjusted for certain items, the company’s earnings were $5.16 a share, compared with estimates of $4.64 a share.
Nvidia forecast first-quarter revenue growth of 233%, ahead of Wall Street expectations of 208% growth. The company forecast revenue for the current quarter of $24.0 billion, plus or minus 2%. Analysts on average were expecting revenue of $22.17 billion.
It expects first-quarter adjusted gross margin to be 77%, plus or minus 50 basis points, beating analysts estimates of a gross margin of 75.6%.
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