Nvidia’s market capitalization saw a massive jump among other top US companies on Thursday. In just one day, the graphics-chip maker’s market capitalization increased by almost $184 billion, which is one of the largest one-day gains in US corporate history.
According to Dow Jones Market Data, Nvidia’s market capitalization was $754.3 billion at the closing of the stock market on Wednesday. On Thursday, the stock traded as high as $973.8 billion intraday and closed at around $938.1 billion, considering that there are 2.47 billion shares outstanding and the shares’ value is $379.80.
To put this mammoth increase into perspective, Nvidia’s one-day market capitalization gain is higher than the total market capitalization of some of the world’s largest and most iconic companies in industries such as banking, entertainment, apparel, and software.
Below is a comparison of 10 S&P 500 companies whose total market capitalizations are lower than Nvidia’s one-day gain on Thursday.
Have you ever heard of Wells Fargo, Morgan Stanley, Blackstone Group, or Goldman Sachs? These are the giant companies of Wall Street, and Nvidia’s market cap gain on Thursday was bigger than the entire market capitalization of each of these companies.
That’s right, Nvidia’s market capitalization jump on Thursday was greater than the total market capitalization of companies such as Walt Disney, Netflix, Nike, Boeing, UPS, Verizon, and Adobe. Based on data from companiesmarketcap.com, if Nvidia’s market capitalization gain on Thursday was considered a stand-alone company, it would be the 55th largest public firm in the world.
Nvidia’s entire market cap is approaching $1 trillion. Only five companies in the world have market capitalizations above $1 trillion, including Apple, Microsoft, Saudi Aramco, Alphabet (Google), and Amazon. If Nvidia ever closes at $404.86, it will join this club. The stock closed at $379.80 on Thursday.
So, what happened on Thursday? Jensen Huang, Nvidia’s CEO, and other executives said in a statement on Wednesday night that the sales of data centers that are AI-enhanced would boost record revenue of around $11 billion in the second quarter, compared to the $7.17 billion that Wall Street analysts were anticipating, according to FactSet. Last year, Nvidia reported second-quarter revenue of $6.7 billion.
Dan Ives, the tech analyst at Wedbush Securities, tweeted that “in 22 years of covering tech stocks and large cap, we have NEVER seen a guidance range of this magnitude on a large-cap tech name.”
According to a MarketWatch analysis of FactSet data, Nvidia now accounts for about 4.6% of the entire Nasdaq stock market, up from 3.74% yesterday. This development could be a game-changer in many ways.
– With reporting from Philip van Doorn.