Nvidia is ‘printing money’: Now more valuable than Mark Zuckerberg's Meta
Nvidia's shares jumped 16% adding about $277 billion in market capitalization.
Nvidia surge to an all-time high marks the biggest single-session increase in market value in history. With this, the chipmaker has become more valuable than Mark Zuckerberg's Meta which registered historic gain just three weeks ago. Nvidia's shares jumped 16% adding about $277 billion in market capitalization. Its total market value now stands near $2 trillion and the addition overshadowed $197 billion gain made by Facebook-parent Meta at the earlier this month.
The company said that revenue in the current period will be about $24 billion, which analysts had predicted to be $21.9 billion on average. Nvidia Chief Executive Officer Jensen Huang said in the statement, “Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations.”
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Stacy Rasgon an analyst at Sanford C. Bernstein said, “The company is printing money at this point. And the prospect for continued growth from here still seems solid.”
Why is there a surge in Nvidia shares?
Nvidia shares surged after the Santa Clara, California company reported quarter results that fortified its place in artificial intelligence technologies. The company is a world leader in graphic chips and has surpassed high expectations. Nvidia controls about 80% of the market for accelerators in the AI data centers which are operated by Amazon.com Inc.’s AWS, Alphabet Inc.’s Google Cloud and Microsoft Corp.’s Azure.
Morgan Stanley analyst Joseph Moore said, “We had never seen $2 billion of upside to quarterly revenue guidance until Nvidia did it a few quarters ago, but it has become routine during the AI surge. Strength of AI demand continues to be remarkable.”