On Wednesday evening, Nvidia shares reached over $1,000 for the first time after the chipmaker and AI hardware company released its quarterly report, exceeding analyst expectations.
After its stock rose 7 percent, Nvidia also said it was splitting its stock 10-to-1. Its shares are expected to reach another high today. Its quarterly report showed the company’s sales tripled since last year to $26 billion.
CEO Jensen Huang promised Nvidia would see increased revenues from its AI chip Blackwell later in the year.
Because of Nvidia’s success, the entire S&P 500 was lifted up, leading many to joke that Nvidia is carrying the entire stock market.
this is the most important day of our lives pic.twitter.com/3YltpTMHXa
— sophie (@netcapgirl) May 22, 2024
Nvidia $NVDA basically controlling the entire stock market pic.twitter.com/kHTLfUYzfh
— Barchart (@Barchart) May 23, 2024
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As MarketWatch notes, Nvidia is now worth more than the entire German stock market. Companies primarily listed on the German market had an aggregate value of $2.51 trillion as of Wednesday, according to FactSet. Nvidia’s valuation hit $2.6 trillion after its extended market trading.
While Nvidia has led the wave of AI financial speculation, primarily through its data center sales which revolve around AI chips and equipment for AI servers (Nvidia reported its data center sales rose 427 percent from Q1 2023 to $22.6 billion in revenue), critics think its returns could decline throughout the year—perhaps most simply because they cannot possible meet the absurd amount of expectations placed upon them by financiers.
This is a developing story. Stay tuned to VT.com for more updates.
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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