- A 25% after-hours surge in Nvidia's stock has put the company on track to hitting the $1 trillion market-cap level.
- The latest rally in the chipmaker's shares comes after the firm released a strong earnings report.
Make room, Apple, Microsoft and Alphabet! A potential new entrant is knocking on the doors of the exclusive club of trillion-dollar market-cap companies.
Chipmaker Nvidia, whose stock more than doubled in price this year and beat all S&P 500 peers, has seen its market capitalization close in on the elusive $1 trillion mark following a stunning after-hours rally of 25% on Wednesday. The share surge was powered by the company's glowing forecasts for the second-quarter of fiscal 2024.
The after-hours jump in Nvidia's shares boosted its effective market capitalization by about $190 billion toward $950 billion, according to Insider calculations based on Refinitiv data.
That suggests an increase of more than 160% in the company's market value so far this year - with its stock riding an investment boom in artificial intelligence technologies sparked by the smashing debut of OpenAI's large-language tool ChatGPT.
In its latest earnings release, the Santa Clara-based chipmaker projected its revenues for the quarter through July at $11 billion. The figure for the three months through April was $7.19 billion, up 19% from the previous period.
Nvidia CEO Jensen Huang said the company is "significantly increasing our supply to meet surging demand" for its data center products.
Should the firm's market cap reach the $1 trillion mark, it would join an elite group of the world's most valued companies including Apple, Microsoft, Alphabet and Amazon.
"The computer industry is going through two simultaneous transitions — accelerated computing and generative AI," Huang said in the earnings release. With heavy investor interest in Nvidia, its founder Huang has also seen his net worth skyrocket to $27.3 billion this year.
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