Enter your email address below and subscribe to our newsletter

Nvidia’s Value Jumps by an Amount Equal to Adobe’s Worth in Just One Day

By Oluchukwu Ikemefuna

Share your love

Nvidia surge has restored investors’ confidence in the AI-driven boom in chip demand. According to LSEG data, the surge translated to an addition of around $218 billion in market value on the day. This is the second-largest single-day market cap gain in history on Wall Street.

Nvidia

Product Demand Causes Nvidia Surge

The company provides chipmakers that are used to power artificial intelligence or AI applications. In recent times, there has been a surge in demand for their product. The company’s revenue more than tripled in the latest quarter from the same period a year earlier. 

Nvidia surge

It’s the latest sign that the excitement surrounding artificial intelligence likely won’t subside anytime soon. Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing some eye-popping numbers. 

Notably, Nvidia’s gain is only the second-biggest one-day gain in the company’s market value this year following a record jump of $273 billion on Feb. 22. Thursday’s gains came after Nvidia said net income rose more than sevenfold compared to a year earlier, jumping to $14.88 billion in its first quarter that ended April 28 from $2.04 billion a year earlier.

Nvidia Surge Increases Value of the Company 

Nvidia’s market cap gain was roughly equivalent to the full value of Adobe. The increase was second only to its own $277-billion jump on the day following its previous earnings report in February.

Also Read: Apple to Utilize Its Own Server Chips for Future AI Tools

Nvidia surge of $ 2.55 trillion also was closing in on Apple, the second-largest US company by market value at $2.87-trillion. Microsoft is the largest company by market value, at $ 3.17 trillion.

Nvidia’s price at the close of trading Thursday, making it just the ninth company in the S&P 500 with a share price over $1,000 (which sounds more notable than it is.) That will soon change however. On Wednesday, Nvidia announced that it plans a 10-for-1 stock split, meaning there will be 10 times more shares outstanding, but the price of each will be closer to $100 each. The company said the split, effective after markets close on June 7, will make its shares more accessible to employees and investors.

Conclusion 

The big stock move came even as expectations were high for Nvidia with its shares trading near record peaks in the run-up to earnings. The results also capped a strong quarter for U.S. technology giants, including Microsoft, with AI emerging as a major growth driver.

“Companies are continuing to increase their capital expenditures, particularly Big Tech, to keep up with this revolutionary technology, and Nvidia is by far the biggest beneficiary,” said Josh Gilbert, market analyst at eToro.

Interact with us here: 

Facebook: Silicon Africa.
Instagram: Siliconafricatech.
Twitter: @siliconafrite

Share your love
Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

Articles: 328

Newsletter Updates

Enter your email address below and subscribe to our newsletter

Stay informed and not overwhelmed, subscribe now!