Nvidia share price surged nearly 13% on Wednesday, marking a historic one-day gain of about $330 billion—the largest ever recorded on Wall Street. Nvidia’s stock jumped 12.81% to $117.02 per share, pushing its market capitalization to $2.88 trillion. This makes Nvidia the third most valuable company on Wall Street, trailing only Apple and Microsoft.
The surge in Nvidia’s stock value surpassed its previous record, set on February 22, when it gained $277 billion. Nvidia’s highest-ever closing market value was $3.34 trillion on June 18, according to LSEG.
This remarkable rally follows a report from Microsoft on Tuesday highlighting a significant increase in spending on artificial intelligence, which is expected to drive high demand for Nvidia’s processors. Additionally, Advanced Micro Devices (AMD) raised its 2024 forecast for AI chip sales, further fueling gains for Nvidia and other chipmakers.
Morgan Stanley analysts boosted Nvidia to their ‘Top Pick’ status following a recent sell-off from June’s record highs. They view the recent dip in Nvidia’s share price as a favorable entry point, citing strong short-term and long-term data and minimal competitive concerns. Morgan Stanley has maintained an ‘Overweight’ rating on Nvidia with a target price of $144.
Nvidia’s stock has risen over 140% in 2024, significantly outperforming the Nasdaq’s 17% gain. The company is set to release its next quarterly report on August 28, with analysts forecasting a nearly 10% growth in earnings for technology companies within the S&P 500, according to LSEG data.
The Philadelphia Semiconductor Index also saw a 7% increase, marking its largest one-day gain since 2022, though it remains 11% below its record high close from July 10.
Disclaimer: Investors should consult certified experts before making any investment decisions.
