Nvidia Market Cap Rises by $1.4 Trillion to Record Level

By Douglas A. McIntyre Published Jun 26, 9:15AM EDT

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Nvidia Corp.’s (NASDAQ: NVDA) market cap has rallied to an all-time high of $3.76 trillion.
This is a sign that the AI revolution has not slowed.

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Nvidia Market Cap Rises by $1.4 Trillion to Record Level — © Shutterstock / rafapress

Worries about competition and its sales in China had beaten down Nvidia Corp.’s (NASDAQ: NVDA | NVDA Price Prediction) market cap. Yet, it has rallied to an all-time high, adding $1.4 trillion to its value. Its market cap is now the world’s largest at $3.76 trillion, which puts it just ahead of Microsoft.

Nvidia stock trades near $154. In early April, shares traded at $92. One reason that shares stumbled is that CEO Jensen Huang said, “the $50 billion China market is effectively closed to U.S. industry.” His reference was to artificial intelligence (AI) chips, a business Nvidia dominates. CNBC points out that this challenge will not hurt the company as badly as first expected. In fact, Nvidia expert Loop Capital said its market cap is headed toward $6 trillion because of its dominant position in the sector.

Another reason Nvidia faltered was concern that AI adoption had slowed. Earnings reports from tech giants like Microsoft raised that issue. However, Nvidia’s largest customers continue to put hundreds of billions of dollars into AI data centers, which are at the heart of the industry. Nvidia’s market share of add-in-board GPUs was 92% in the first quarter.

A primary reason for the rally is Nvidia’s earnings. In its report, it offered a rosy picture of its near-term future. In the most recent quarter, revenue rose 69% year over year to $44.1 billion. Per-share earnings rose 27% to $0.76. The company added, “Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.”

In the current quarter, the company expects revenue of $45 billion, plus or minus 2%. Its extraordinary revenue growth continues. According to Yahoo, the analysts’ forecast is slightly higher than that.

The AI revolution has not slowed, and Nvidia’s market cap is a sign of that.

Nvidia CEO Doubles Down on Its Future

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.