Nvidia Corp. (NVDA) produced the largest market value increase in a single session on Thursday, February 22. The computer graphics and multimedia software manufacturer saw a 16% boost to its share price, which added around $277bn to its market capitalisation to bring its total value close to $2trn.
NVIDIA Sets Single-Day Record for Market Value Increase
This massive gain overtook the previous best day of trading set by Facebook owner Meta Platforms Inc. (META) when it added $196bn to its value on February 2 this year.
Analysts had hotly tipped NVDA to make huge profits thanks to its groundbreaking artificial intelligence (AI) technologies; however, even those analysts were taken aback by the size of the revenue gains.
With Meta and Microsoft Corp. (MSFT) among their key clients, NVDA is currently riding the wave of the AI revolution. Joseph Moore, an analyst at Morgan Stanley, said that the “strength of AI demand continues to be remarkable”, as he pointed out that NVDA earning $2bn more than its guidance figure has become routine.
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The share hike came shortly after the company announced revenue for the fourth quarter of 2023 at $22.1bn, representing a jump of 22% from Q3 and a 265% increase year-on-year.
The share price climb was partly driven by the fact that those Q4 results provided GAAP earnings of $4.93 per diluted share, which was 33% higher than in Q3 and 765% more than at the same time last year.
Sanford C. Bernstein analyst Stacy Rasgon said that Nvidia is “printing money at this point” before going on to suggest that they have solid prospects for continued growth from this point onwards.
