In overnight trading, Nvidia added a whopping $200 billion to its market capitalization m-cap, up 24.37 per cent in a single day, as the chipmaker Nvidia Corp forecast a strong revenue growth and said it was boosting production of its AI chips to meet surging demand.
Nvidia's stock surged 28 per cent to $391.50 apiece, the highest level ever, driving its market value to more than $960 billion, making it the fifth-most valuable company on Wall Street. At $379.80, Nvidia eventually commanded a m-cap of $939.29 billion against $755.24 billion in the previous session. This supports our server team's opinion that the most severe inventory correction in servers was in February-April for components. While we have had a very positive view on the secular growth potential of the data center, Nomura said, a softness in US cloud spending might create a headwind to data chip demand through the first half of this year, with a recovery beginning in the second half.
Nomura said Nvidia's July quarter outlook suggests that the recovery in chip demand from US cloud server providers began earlier than expected. Nvidia's PC-related gaming sales rose quarter-on-quarter in April and the brokerage feels Nvidia's very strong overall sales guidance suggests continuing quarter-on-quarter growth in the July quarter.
NVIDIA's AI boom is propelling it up the tech ladder and ispositioned to become a must-own stock for everyone. The days of talking about FAANG Facebook, Apple, Amazon, Netflix, and Alphabet have transformed into MATANA Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon AI investment.
NVIDIA's AI boom is making it climb up the tech ladder and is positioning itself to become a must-own stock for everyone, said Edward Moya, senior market analyst at The Americas OANDA.
MATANA Microsoft, Apple, Amazon, Netflix, Alphabet, Nvidia, and Alphabet AI investment will likely be entering a boom stage, he said.
Moya said that Nvidia is likely to become a trillion-dollar company as the chipmaker is planning a substantial increase in the second half of the year.
Robust orders for data centers are a great way to start what could be an amazing 10 - year cycle. The quarter's sales are expected to range between $11 billion and 2 per cent, up from the forecast of $7.18 billion. Everyone's pushing AI in the cloud, and you will need Nvidia to do that, he said.