At the close on Wednesday, NVIDIA shares were still trading at $305.38 a piece. In recent weeks, some have argued that although the company has been doing very well lately, the shares may already be overpriced, according to some indicators, as prices have increased significantly recently.
However, NVIDIA refuted the doubters,
because the company’s revenues exceeded what Wall Street analysts would have expected by more than 50 percent
After Wednesday’s close, the company published its economic results for the first quarter of 2023, which far exceeded analysts’ expectations.
As a result, they started buying the company’s shares in the hours after the closing (after hours trading, when only a part of the investors can trade the shares). As a result, the value of the shares increased from $305.38 to $382.11 by the opening of the next day, which means an increase of more than 25 percent.
NVIDIA shares have performed very well on the stock market not only the other day, but also in the part of 2023 so far. The chipmaker’s shares were priced at $143.15 a piece earlier this year, so they’ve more than doubled in price. In recent months, the company has been given a major boost by the spread of artificial intelligence, as many chips are also manufactured for its operation.
The company is breaking historical records
Before Thursday’s market close, Yahoo Finance reported that the company was up 27 percent, adding more than $200 billion to the company’s total market value. If they can maintain this result until the stock market closes, it could be the largest numerical increase ever measured in one day (so far Apple is the leader, whose total value increased by $191 billion in one day in November 2022).
Meanwhile, Reuters drew attention to the fact that together with the increase, NVIDIA also approached the total value of 1 trillion dollars, as the company’s market capitalization increased to more than 950 billion dollars.
In the meantime, the market analysts also started bidding against each other to raise the expected target price of the shares. According to the most optimistic expectation, by the end of this year, the price of the shares may be $644 per piece, and NVIDIA’s total value may reach $1.59 trillion, approaching Google’s parent company, Alphabet.
The company wrote in its report: they calculate that they will have a profit of 11 billion dollars in the second quarter of 2022. Wall Street analysts had previously expected revenue of “only” 7.2 billion.
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