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Nvidia Corp (NVDA.O) has solidified its position as a juggernaut in the tech world, catapulting to become the world’s fourth-largest company by market capitalization. A remarkable 16.4% surge in its stock price on Thursday, driven by a quarterly earnings report that exceeded analysts’ expectations, propelled the chipmaker’s market cap to $1.96 trillion, surpassing tech giants like Amazon.com Inc and Alphabet Inc.
The surge in Nvidia’s market cap, a staggering $740.2 billion increase this year alone, marks the largest such growth globally. This surge has been instrumental in positioning Nvidia as the third-largest company in the United States, trailing only behind Microsoft Corp and Apple Inc.
Globally, Nvidia now stands as the fourth-largest company, trailing only behind Saudi Aramco. The company’s market cap has seen a significant surge from $1.52 trillion at the end of January to its current value.
Nvidia’s remarkable performance has played a pivotal role in driving the performance of the S&P 500 index, contributing to over a quarter of the index’s rise this year. Analysts are closely monitoring Nvidia’s trajectory, eager to see if the chipmaker will continue to drive further gains.
The record-high performance of the S&P 500 index on Thursday, reflecting a 6.65% increase this year following a robust rally in the technology sector, underscores the broader impact of Nvidia’s success.
According to Brian Colello, a strategist at Morningstar, leading cloud computing companies are poised to increase their capital expenditures to meet the soaring demand for artificial intelligence training and inference. This trend is expected to significantly benefit Nvidia, positioning the company for sustained revenue growth in the coming years.
“We anticipate revenue will rise by a couple of billion each quarter throughout fiscal 2025 for Nvidia as more chip supply comes online,” Colello remarked, highlighting the positive outlook for the company’s future growth.
