Nvidia Corp.’s stock was on track to close at levels that would value the chip giant at $1 trillion in the wake of new product announcements showcasing the company’s grip on the artificial-intelligence market.
The company’s Monday product announcements, including its new Grace Hopper supercomputer and its first ethernet networking offering showed that Nvidia
NVDA,
+2.99%
is “not standing still” but rather “running as fast as they can and extending their already dominant lead,” according to Evercore ISI analyst C.J. Muse.
Read: Wall Street tech darling Nvidia unveils more AI products — including a new supercomputer
While Nvidia teased the ethernet debut on its last earnings call, Wells Fargo analyst Aaron Rakers noted that the announcement illustrated Nvidia’s “deepening enterprise strategy” with a product the company says will help in the deployment of generative AI, or the type of AI popularized by ChatGPT.
Nvidia shares were up 4.9% in morning trading Tuesday to a recent $408.70. The stock would have to close at $404.858 or above in the regular session for Nvidia to achieve a market capitalization upwards of $1 trillion, according to Dow Jones Market Data.
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The stock’s rally builds on a year-to-date surge that hit high gear last week as Nvidia stunned Wall Street with its expectations for how AI-fueled demand for its data-center products would translate into financial performance. The company vastly exceeded consensus expectations with its revenue forecast for the current quarter, helping to send shares up 24.4% in a single day last week.
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Nvidia shares are now ahead 181% so far this year.
Rosenblatt Securities analyst Kevin Cassidy wrote in a weekend note that Nvidia’s forecast, which implies 50% sequential growth for the July quarter, is one of the “historical and defining moments of a significant cycle which we view as secular and call the Mother of All Cycles.” (Marvell Technology Inc.’s
MRVL,
-3.22%
outlook was another key moment in that narrative, according to Cassidy.)
Read: Marvell stock rockets more than 30%, its best day ever — is it the next hot AI play?
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