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Nvidia’s stock rose on Wall Street on Monday despite continued declines for its larger peers, helping the artificial intelligence heavyweight regain its position as the world’s second-largest company amid an artificial intelligence boom.
Nvidia’s centibillionaire CEO Jensen Huang spoke at a conference in Washington, DC last month.
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important facts
Nvidia’s intraday stock price hit $130.64, its highest since Aug. 26, and the stock was up about 4.2% by mid-afternoon.
Accordingly, the Silicon Valley company recorded its highest market capitalization since August, with a market capitalization of $3.19 trillion, overtaking Microsoft ($3.07 trillion) for the first time in six weeks to become the world’s second-largest market capitalization. company. Nvidia is currently only worth less than Apple’s $3.4 trillion valuation.
Nvidia stock’s strong start to the week comes despite widening losses as the S&P 500 index fell 0.6% as rising bond yields and oil prices stemmed stock gains from a shift in U.S. monetary policy. It was a great start.
Shares of all $5 trillion tech companies except Nvidia fell on Monday, with Apple dropping 1.3%, Microsoft 0.7%, Google parent Alphabet 1.4%, Amazon 2.8% and Facebook parent Meta 0.9%. It fell.
Why does Nvidia increase inventory on Mondays?
Nvidia, which designs a full suite of custom AI technologies for high-end applications such as large-scale language models, announced on Monday that Super Micro Computer, a fellow AI technology maker, will be working alongside Nvidia’s graphics processing units (GPUs). It benefited from the company’s announced increase in sales of introduced liquid cooling products. This quarter was strong. Another bullish note from Melius Research analyst Ben Reitz, who wrote to clients that “Things are still pretty good here” despite Nvidia stock enjoying an extended rally. Analyst comments also pushed up the stock price. Reitzes said “strong AI spending” by Microsoft, Alphabet, ChatGPT’s parent company OpenAI and others should “drive consumption” of Nvidia’s cores (GPUs). Optimism about demand grows following comments from Nvidia’s centibillionaire CEO Jensen Huang, who maintained that demand for his company’s AI products was “huge” and “insane.” .
Main background
Monday continued a month of outsized returns for Nvidia, with its 26% return since Sept. 6 outpacing the S&P’s 6% gain over the period and the average 7% gain for its $5 trillion industry. It’s below. Nvidia briefly became the world’s largest company in June, with its stock peaking at a still-record $140.76. Nvidia was a fairly obscure company before it was known for its video game business, but its profits soared during the generative AI boom and it became a Wall Street darling. Nvidia’s valuation has increased tenfold in the past two years.
big number
21.9 billion dollars. That’s the amount of adjusted profit Nvidia is expected to report in the fiscal quarter ending this month, according to the average forecast of analysts tracked by FactSet. This represents a year-on-year increase in earnings before interest, taxes, depreciation and amortization (EBITDA) of over 80% and over 1,000% over the comparable period in 2022.
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