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Nvidia’s market value surges by $90 billion, hitting new record in pre-launch deals, following company’s report of stellar earnings

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  • Nvidia’s market value surged by $90 billion in pre-market trading on Thursday after posting yet another blockbuster earnings figure.

  • The company’s shares rose nearly 8% to $508.41 apiece, pushing its market capitalization to a new record of $1.25 trillion.

  • Nvidia’s second-quarter revenue increased 101% from a year earlier, reaching $13.5 billion.

Nvidia’s market value rose by a staggering $90 billion in pre-market trading on Thursday after the leading chipmaker revealed another stellar financial performance.

Shares of the Santa Clara-based company rose about 8% to $508.41 apiece in early trading as investors cheered the impressive results. That increased its market capitalization by about $90 billion to a new record of $1.256 trillion, according to Insider calculations.

On Wednesday, the company reported strong second-quarter results – its revenue for the period of $13.51 billion was 88% higher than the previous quarter and 101% higher than a year earlier.

Nvidia is the year’s best-performing company on the S&P 500 U.S. stock index, up a staggering 222% year-to-date, fueled by ChatGPT-led AI buzz. The semiconductor company is seen as well-positioned to benefit from growing demand for the high-end computing infrastructure required for AI operations.

This year, investors have bought shares of the chipmaker, as well as other big tech companies including Apple, Meta and Alphabet, thanks to AI buzz that has helped lift the overall stock market this year. The rally pushed Nvidia’s market capitalization above $1 trillion for the first time in May, allowing the company to join an elite club of highly valued companies including Apple, Microsoft and Amazon.

“AI godfather Jensen and Nvidia just gave some solid guidance that will be heard around the world. Demand for AI is off the charts,” Wedbush analyst Dan Ives said in write to X.

Other market experts also commented on Nvidia’s strong performance. “NVDA has once again disappointed expectations,” said Jim Bianco, a 40-year market veteran. write to X“NVDA raises the entire S&P index by about 0.50% (or about 25 points),” he added.

Nvidia’s stock surge also saw its CEO’s wealth rise significantly. Jensen Huang’s personal wealth rose to $42 billion after the company’s results, according to the Bloomberg Billionaires Index.

Read the original article on Business Insider