The numbers were eagerly awaited. Now it is clear: The chip company Nvidia has set a record on Wall Street. The previous record was held by the Facebook group Meta.
Around $277 billion more in market value in one day: The chip company Nvidia has set a Wall Street record thanks to investors’ euphoria about AI. The market value of the semiconductor specialist reached the two trillion dollar mark. The day before, Nvidia presented quarterly figures with strong increases in sales and profits and once again significantly exceeded analysts’ expectations. CEO Jensen Huang also promised further growth.
Nvidia shares rose by 16.4 percent to $785.38. Things continued to rise in after-hours trading. The previous record for the largest increase in stock market value in one day was held by the Facebook group Meta – with an increase of 197 billion dollars after quarterly figures that were also well received at the beginning of the month.
Explosive growth at Nvidia
The boom in the use of artificial intelligence is driving explosive growth at Nvidia. In the last quarter, sales of $22.1 billion were more than three times higher than a year earlier. Analysts on average had expected $20.4 billion.
At $18.4 billion, the business with technology for data centers brought in five times as much sales as in the same quarter of the previous year. The Nvidia technologies, originally developed for graphics cards, have long been proven in computing work to train applications with artificial intelligence. This causes Nvidia’s business – and its stock market value – to rise rapidly.
The numbers were eagerly awaited. By then, Nvidia shares had risen by around 40 percent since the beginning of the year alone – and observers assumed that the slightest indication of a slowdown in growth would have sent the price downwards.
Source: Stern
