2023-05-25 17:55:05
The capitalization of the manufacturer of chips NVIDIA approached $ 1 trillion
The popularity of artificial intelligence has increased the demand for processors that can speed up computing. NVIDIA might become the ninth company ever to break $1 trillion
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Shares of American NVIDIA soared by 29.2% to $394.8 at the beginning of the trading session on the American stock exchange NASDAQ. As of 20:25 Moscow time, securities rose in price by 26.83% and traded at $387.32. The market value of the chipmaker rose by $199 billion and at some point rose to a record $955 billion, calculated Bloomberg. NVIDIA might become the ninth company in the world to ever break the $1 trillion mark.
One-day growth in the chipmaker’s capitalization has become one of the largest in the history of the market. It outpaced Apple’s November market value growth of $191 billion and Amazon’s slightly smaller February 2022 capitalization growth, the agency recalls.
Demand for the paper rose following NVIDIA’s Q2 sales forecast topped analysts’ expectations. Thanks to the growing AI market, NVIDIA raised its second-quarter revenue forecast to around $11 billion, more than 50% above Wall Street’s estimate of $7 billion. The head of the company Jensen Huang said that the chipmaker received “incredible orders.” According to him, equipment in $1 trillion data centers will need to be replaced with AI chips, which will allow running generative artificial intelligence tools such as ChatGPT.
Shares in other chip and AI-related software makers also rose. Rival chip maker Advanced Micro Devices (AMD) jumped 10% and Taiwan Semiconductor Manufacturing (TSMC) jumped 11%.
“Looks like a new gold rush is upon us and NVIDIA is selling all the picks and shovels for gold diggers.” told Susquehanna Financial Group analyst Christopher Rolland. He said that he was not surprised that the results of the chipmaker had a positive impact on the entire sector, and added that at the moment he considers NVIDIA shares to be the most promising.
Interviewed Archyde.com analysts raised NVIDIA Stock Price Targets – The average target price has more than doubled this year. About 27% of experts expressed the opinion that the company will benefit more than others from the development of the field of artificial intelligence, since it dominates the market for chips used for ChatGPT and many similar services.
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JPMorgan Experts raised target level for NVIDIA from $250 to $500 per share. The CFRA recommended buying the paper with a target price of $415 (increased from $350). Rosenblatt Securities and HSBC give the highest estimate of $600 over a one-year horizon. At that price, the chipmaker would be worth regarding $1.48 trillion, more than the current capitalization of Amazon (AMZN), the fourth-largest American company by value.
Morgan Stanley analyst Joseph Moore said that NVIDIA’s sales forecast is in line with the level expected in 2025. “The transformational surge in AI spending is paying off much sooner than expected,” he said. Goldman Sachs noted that the company’s revenue forecast assumes a consistent nearly doubling of its data center business. Goldman Sachs had a buy recommendation for the stock with a target price of $440, which was raised from $275.
Marina Mazina.
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