2023-05-25 12:56:01
The market capitalization is at an all-time high of $974 billion
The company “Nvidia” is heading to record a record jump in its market value within one day, following it raised its expectations regarding the demand for chips used in artificial intelligence applications.
The company’s shares rose as much as 29% in following-market trading overnight.
If these gains are maintained, the company’s market capitalization will rise by $219 billion to reach an all-time high of $974 billion.
Nvidia also expected to record quarterly revenues of more than 50% above Wall Street estimates, amid comments by the company’s CEO Jensen Huang in a statement that the company is “significantly increasing its supplies to meet the growing demand” for chips related to data centers.
AI-related stocks rose in extended trading on Wednesday, adding nearly $300 billion in market capitalization following chipmaker Nvidia’s comments and predictions.
Before Nvidia’s report on Wednesday, optimism regarding artificial intelligence had already sent its stock up 109% so far in 2023, making the chip maker the best performer in the S&P 500 so far.
The stock currently trades at 60 times expected earnings and thus close to its peak of 68 times expected earnings recorded in 2021, according to Refinitiv data.
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