https://www.reuters.com/technology/ai-leader-nvidia-rises-forecast-tops-wall-streets-lofty-goals-2024-02-22/ Skip to main content Exclusive news, data and analytics for financial market professionals Learn more aboutRefinitiv Reuters home * World Browse World + Africa + Americas + Asia Pacific + China + Europe + India + Israel and Hamas at War + Japan + Middle East + United Kingdom + United States + US Elections + Ukraine and Russia at War + Reuters Next * Business Browse Business + Aerospace & Defense + Autos & Transportation + Davos + Energy + Environment + Finance + Healthcare & Pharmaceuticals + Media & Telecom + Retail & Consumer + Future of Health + Future of Money + Take Five + World at Work * Markets Browse Markets + Asian Markets + Carbon Markets + Commodities + Currencies + Deals + Emerging Markets + ETFs + European Markets + Funds + Global Market Data + Rates & Bonds + Stocks + U.S. Markets + Wealth + Macro Matters * Sustainability Browse Sustainability + Boards, Policy & Regulation + Climate & Energy + Land Use & Biodiversity + Society & Equity + Sustainable Finance & Reporting + The Switch + Reuters Impact * Legal Browse Legal + Government + Legal Industry + Litigation + Transactional + US Supreme Court * Breakingviews Browse Breakingviews + Breakingviews Predictions * Technology Browse Technology + Cybersecurity + Space + Disrupted + Reuters Momentum * Investigations * More Sports + Athletics + Baseball + Basketball + Cricket + Cycling + Formula 1 + Golf + NFL + NHL + Soccer + Tennis ScienceLifestyleGraphics PicturesPodcastsFact CheckVideoSponsored Content + Reuters Plus + Coupons My View Register * Technology Nvidia adds record $277 billion in stock market value By Noel Randewich and Medha Singh February 22, 20249:49 PM UTCUpdated ago * * * * * * * * Illustration shows NVIDIA logo A smartphone with a NVIDIA logo on a computer motherboard is shown in an illustration. REUTERS/Dado Ruvic Purchase Licensing Rights, opens new tab Feb 22 (Reuters) - Nvidia (NVDA.O), opens new tab added $277 billion in stock market value on Thursday, Wall Street's largest one-day gain in history after the heavyweight chipmaker's quarterly report beat expectations and reignited a rally fueled by optimism about artificial intelligence. The company's stock soared 16.4% to close at $785.38, a record-high close, lifting its market capitalization to $1.96 trillion after its January-quarter report late on Wednesday showed demand for its specialized chips used in AI computing continued to outpace analysts' already-high expectations. The Santa Clara, California-based company's results fed new fuel to a global rally in technology stocks linked to AI, propelling the S&P 500 (.SPX), opens new tab, Europe's STOXX 600 (.STOXX), opens new tab and Japan's Nikkei share average (.N225), opens new tab to record highs. Traders exchanged $65 billion worth of Nvidia's shares on Thursday, accounting for almost a fifth all trading in S&P 500 stocks. Nvidia's one-day increase in stock market value was the largest in Wall Street's history, easily beating a record $196 billion gain by Meta Platforms (META.O), opens new tab on Feb. 2 after the Facebook parent declared its first dividend and posted robust results. The rise in Nvidia's market value on Thursday eclipsed the entire value of Coca-Cola (KO.N), opens new tab, at $265 billion. Its gain made Nvidia the U.S. stock market's third-most valuable company, pulling ahead of Amazon.com (AMZN.O), opens new tab and Alphabet (GOOGL.O), opens new tab after jockeying with the two tech powerhouses in recent weeks. Microsoft (MSFT.O), opens new tab and Apple (AAPL.O), opens new tab, valued at $3.06 trillion and $2.85 trillion, respectively, are Wall Street's two most valuable companies. Nvidia's stock has now climbed 58% in 2024, accounting for more than a quarter of the S&P 500's increase year-to-date. That makes Nvidia's outlook crucial not just for direct shareholders, but for owners of index funds widely held in retirement savings accounts. "The people who made the most money in the gold rush of the mid-1800s were the ones providing the tools to get the job done, not those hunting for the precious metal," said Russ Mould, investment director at AJ Bell. "Nvidia is effectively playing the same role today in this tech revolution." Soaring demand for Nvidia's chips used by companies rushing to upgrade their AI offerings helped the Silicon Valley firm forecast a whopping 233% growth in current-quarter revenue, above market expectations of a 208% rise. Other chipmakers exposed to AI also rallied, with Advanced Micro Devices (AMD.O), opens new tab jumping about 11% and Broadcom (AVGO.O), opens new tab adding 6.3%. The Philadelphia chip index (.SOX), opens new tab rallied 4.97% to a record high in its biggest one-day gain since May 2023. The S&P 500 surged 2.11% to a record high, and the Nasdaq (.IXIC), opens new tab jumped nearly 3%, leaving it just short of its first record-high close since November 2021. Super Micro Computer (SMCI.O), opens new tab, which sells AI-related server equipment, jumped over 30%, bringing its gain this year to over 240%. Nvidia, which controls about 80% of the high-end AI chip market, reported fourth-quarter revenue jump of more than threefold from a year ago to $22.10 billion. Some analysts, however, worried that U.S. curbs on chips sales to China may be hurting its revenue growth. Sales in China amounted to about 9% of Nvidia's fourth-quarter sales, down from 22% in the prior quarter. Reuters Graphics Reuters Graphics Rapid increases in analysts' financial estimates mean Nvidia's forward earnings valuation has fallen, even after its stock more than tripled last year. Ahead of Nvidia's report, it was valued at about 30 times expected earnings, down from 49 times a year before, according to LSEG data. Still, many investors worry about the rapid pace of Nvidia's gains. "We've gotten well ahead of expectations and baked in a lot for the next three years," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest. At least 17 brokerages raised their price targets after results. Among the most bullish, Rosenblatt Securities raised its price target to $1,400 from $1,100, implying a $3.5 trillion stock market value. UBS cut its price target to $800 from $850, reflecting "some potential slowing in revenue growth." Short sellers betting Nvidia's stock would fall rushed to close those trades on Thursday, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners. Short sellers had lost over $2 billion on paper, taking their declines to more than $6.8 billion so far this year, Dusaniwsky said. Reporting by Noel Randewich in Oakland, California, and Medha Singh and Amruta Khandekar in Bengaluru Editing by Arun Koyyur and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab * * * * * Purchase Licensing Rights Read Next * The company logo for AT&T is displayed on a screen on the floor at the NYSE in New York TechnologycategoryAT&T restores service after hours of outage8:46 PM UTC * US nears attempt at first moon landing in half century with private robot spacecraft SpacecategoryMoon landing today: private firm to make first US attempt in 50 years10:25 PM UTC * Updated ago * Illustration shows Reddit logo TechnologycategoryExclusive: Reddit in AI content licensing deal with Google4:10 AM UTC * Illustration shows Reddit logo TechnologycategoryReddit's US IPO filing reveals $90.8 million losses, 21% revenue growth in 20239:47 PM UTC LSEG Workspace Technology * Illustration shows representation of Bitcoin cryptocurrency and Bitcoin ETFs test investor commitment to gold-backed paper ETFscategory * February 22, 2024 * 5:39 PM UTC A surge of interest in bitcoin exchange-traded funds is prompting some investors to swap out holdings in gold-backed ETFs, although analysts and fund managers said they are unlikely to challenge bullion longer term. * Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London TechnologycategoryLondon Stock Exchange Group platforms suffer brief outages2:27 PM UTC * A Verizon logo is seen on a van in Manhattan, New York City TechnologycategoryVerizon to fit Audi's test track with 5G for smart vehicle testing1:20 PM UTC * Uber CEO Dara Khosrowshahi interacts with Infosys Co-founder and Chairman Nandan Nilekani in Bangaluru TechnologycategoryUber explores metro, bus bookings in partnership with India's ONDC - source2:11 PM UTC * Google announces new Pixel 8, Pixel 8 Pro Phones and Pixel Watch 2 in New York TechnologycategoryGoogle to make Pixel smartphones in India by next quarter, Nikkei reports3:38 AM UTC Site Index Browse * World * Business * Markets * Sustainability * Legal * Breakingviews * Technology * Investigations, opens new tab * Sports * Science * Lifestyle About Reuters * About Reuters, opens new tab * Careers, opens new tab * Reuters News Agency, opens new tab * Brand Attribution Guidelines, opens new tab * Reuters Leadership, opens new tab * Reuters Fact Check, opens new tab * Reuters Diversity Report, opens new tab Stay Informed * Download the App (iOS), opens new tab * Download the App (Android), opens new tab * Newsletters, opens new tab Information you can trust Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Follow Us * * * * * Thomson Reuters Products * Westlaw, opens new tab Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. * Onesource, opens new tab The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. * Checkpoint, opens new tab The industry leader for online information for tax, accounting and finance professionals. LSEG Products * Workspace, opens new tab Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. * Data Catalogue, opens new tab Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. * World-Check, opens new tab Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. * Advertise With Us, opens new tab * Advertising Guidelines, opens new tab * Coupons, opens new tab * Purchase Licensing Rights, opens new tab * Cookies, opens new tab * Terms of Use, opens new tab * Privacy, opens new tab * Digital Accessibility, opens new tab * Corrections, opens new tab * Site Feedback, opens new tab All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays. (c) 2024 Reuters. All rights reserved