Nvidia is driving the market again
Nvidia stock has been on another hot streak ahead of its latest earnings report.
Shares of the AI chipmaker have soared nearly 30% in the last two weeks, giving the firm a roughly $750 billion boost to its market capitalization. That’s also helped lift the tech-heavy Nasdaq up more than 7% from its Aug. 5 low.
The rally comes as the Santa Clara, California-based semiconductor giant extends its recovery from a major drop that erased $900 billion in market value. The chipmaker — whose chips are used to train generative artificial intelligence models — has become a barometer for the health of AI demand and excitement, given its outsized role in the sector. Its stock has also become a market-driving force.
Nvidia’s (NVDA) rebound partially helped drive eight-day winning streaks for both the Nasdaq and the S&P 500 — both of which ended Tuesday. Had the S&P 500 seen a ninth day of gains, it would have been the longest winning streak in two decades.
Nvidia (NVDA) stock was flat in pre-market trading Wednesday, after closing down about 2% Tuesday, to $127.25 per share. The company has a market capitalization of $3.13 trillion, behind only Apple (AAPL) and Microsoft (MSFT).
In the last eight trading days, the “Magnificent Seven” tech stocks — Apple (AAPL), Google parent Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), Facebook parent Meta (META), Tesla (TSLA), and Nvidia — have together grown their market caps by $1.4 trillion — roughly half of the $3.2 trillion market cap gain of the entire S&P 500, according to Yahoo Finance.
The chip giant is set to release its second-quarter earnings report after the market closes next Wednesday, Aug. 28. Analysts and investors will be watching to see whether Nvidia can keep delivering jaw-dropping results quarter after quarter. The company’s results also tend to create waves in the market.
Nvidia reported record first-quarter revenue of $26 billion — a 262% increase from a year prior. Its revenue for the quarter ending April 28 climbed 18% from its last quarterly revenue of $22 billion, which had beat Wall Street’s sky-high expectations and was up almost 270% from the previous year.
After reporting first-quarter earnings, Nvidia’s stock price passed $1,000 for the first time. Analysts at Wedbush called the company’s record performance a “masterpiece quarter” and the “ultimate barometer of the AI Revolution.”
Shares closed at a record high $135.58 on June 18 after it initiated a 10-for-1 stock split earlier that month.