Nvidia nears elite trillion-dollar market cap club of Apple, Microsoft, Alphabet and Amazon

Nvidia’s headquarters in Santa Clara, California on Tuesday, February 23, 2021.

David Paul Morris | Bloomberg | Getty Images

With its breathtaking surge on Thursday, Nvidia could soon find itself in the most elite Wall Street club practically overnight.

The chipmaker saw its shares soar 26% on Thursday, pushing its market value just below the $1 trillion mark to about $950 billion, per FactSet. It was $755 billion at Wednesday’s close.

NVIDIA Will become the fifth publicly traded US company currently valued at $1 trillion. Apple Club formed in 2018. Microsoft, Alphabet And Amazon Now also catch the difference.

Sign Name Market Value (000) YTD % 2023 ex. Revenue (Billions)
AAPL Apple Inc. 2,702,820.0 32.3 384,748.7
msft Microsoft Corporation 2,333,628.0 30.9 211,434.1
Google Alphabet Inc. Class A 1,539,535.0 37.0 299,810.2
amzn Amazon.com, Inc. 1,197,896.0 39.0 559,661.3
NVDA nvidia corporation 951,419.3 122.0 30,426.5

Source: factset

“In late 2021, we begin suggesting Nvidia will become the first semiconductor company with a trillion dollar market cap,” Needham analyst Rajvinder Gill said in a note on Thursday. “While there were some peaks and valleys in the interim years, we believe Nvidia is well positioned to achieve that valuation over time.”

That time could be till Thursday.

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Nvidia’s long-term share price

All eyes are on Nvidia after it forecast sales of $11 billion for its fiscal 2024 second quarter late on Wednesday, citing demand for its graphics processors that are driving artificial intelligence like Google, Microsoft and ChatGPT maker OpenAI. Intelligence powers applications. That forecast blew up Wall Street and turned the AI ​​hype into real results for stocks.

“Clients are ‘racing’ to meet demand based on large language models (LLMs) and generative AI across all major modalities,” Gill said. “We see nearly all previous hurdles behind us, and expect the company to be shipping true, AI-related demand, near term.”

Shares of the company were already up 108% for the year ahead of Thursday’s session. Nvidia’s shocking sales guidance — more than 50% above the $7.15 billion analysts were anticipating for the quarter — has pushed its market capitalization forward almost overnight.

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Nvidia (NVDA) YTD

Bank of America’s Vivek Arya said Nvidia’s current-quarter outlook increase is the biggest the firm has seen in his coverage and that the company’s market cap is on its way to “1 trillion and beyond.”

Arya and several other analysts raised their price targets on the stock on Thursday — seeing a 64% upside from where it closed on Wednesday.