Nvidia on track to become first semiconductor firm with $2 trillion valuation – Business Today
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Nvidia Corp’s shares rose 0.4% Friday to close at a $1.97 trillion valuation after briefly topping the $2 trillion mark in intraday trading.
The gain cements Nvidia’s position as the world’s fourth-most valuable company after rallying nearly 60% since the beginning of the year, with a market capitalization that’s only behind Microsoft, Apple Inc. and Saudi Aramco.
While Apple and Microsoft took over two years to go from $1 trillion to $2 trillion, Nvidia is on track to accomplish that in under a year’s time as the stock rides Wall Street’s AI frenzy.
Nvidia shares surged after it reported blowout results that reaffirmed Wall Street bets on the potential for its artificial intelligence technologies. The chipmaker also gave guidance above expectations, driven by AI spending at its biggest customers, including Meta Platforms Inc.
Nvidia dominates the market for graphics chips designed for complex computing tasks needed to power AI applications that companies are rushing to develop.
The chipmaker reported a 486% year-over-year gain in earnings per share excluding certain items in its fiscal fourth quarter. The company also said it expects first quarter revenue of about $24 billion, handily beating analyst estimates.
In turn, bulls rushed to boost their price targets — the average is now about $863, implying a more than 9% upside, according to data compiled by Bloomberg.
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