Nvidia stock surges 26% in just 3 days

Although the exclusive trillion-dollar tech club has been declining over the past few years due to the ongoing economic slowdown triggered by geo-political risks and high-interest rates, Nvidia is about to welcome its new member, Nvidia.

On Thursday, Nvidia appears to be on the verge of securing a coveted spot within the exclusive trillion-dollar market cap companies that now include only Apple, Microsoft, Alphabet, and Amazon, after Tesla and Meta lost their membership late last year.

The chipmaker's share value surged 26%, propelling its market value to nearly $1 trillion at about $950 billion, according to factSet. This remarkable ascent marks a significant increase from its previous closing market value of $755 billion on Wednesday.

Nvidia's impressive performance is not limited to its earnings of $7.2 billion in the first quarter alone. The company's predictions for the upcoming quarter show an anticipated revenue of $11 billion, surpassing Wall Street's expectations by more than 50%. This incredibly optimistic outlook sparked a remarkable 26% surge in Nvidia stock when the market opened today, adding a staggering $170 billion to its market value.

This represents one of the biggest single-day gains in a single-day gain for a US stock, according to Bloomberg data. The market capitalization of Nvidia is now up to $950 billion. Other players in the chip industry, including Taiwan's TSMC and Japan's Advantest, had a positive impact on the rally.

Needham analyst Rajvindra Gill said in a note on Thursday that the firm was working on a new strategy to improve the stock market.

Why did Nvidia have such a remarkable expansion? ChatGPT's popularity and the high demand for new chips to power generative AI tools have led to a surge in demand. Nvidia is a pioneer in chip technology that has the capacity to either guide us toward salvation or lead us to the ultimate danger: artificial intelligence.

While we have a lot to learn before computer programs resemble Steven Spielberg s depiction of a futuristic Pinocchio with the likeness of Haley Joel Osment, Nvidia has emerged as a top tech company that has emerged as a significant player in the creation and advancement of AI generative systems.

Nvidia, established in 1993 by CEO Jensen Huang, Chris Malachowsky, and Curtis Priem, is dedicated to creating and manufacturing GPUs for gaming, AI, and other applications. The gaming industry has seen significant growth and recognition due to its advancements in AI and its impact on the gaming industry.

In just three trading days of market rout, the elite trillion-dollar Big Tech Club, known as MAMATA, lost over $1 trillion of its value.