Nvidia's Stock Roller Coaster Surges and Plunges Amidst Market Volatility

Nvidia's stock price has been on a roller coaster ride this week. As of Wednesday's close, Nvidia's stock price soared by 13%, and its market value skyrocketed by 329 billion US dollars, refreshing its own single-day record set in the past few months again.

But just one day ago, Nvidia's stock price just suffered a 7% plunge, and its market value evaporated by more than 193 billion US dollars.

Matt Maley, chief market strategist at MillerTabak + Co, said, Nvidia's volatility shows how confused investors are about the investment prospects of AI stocks and chip stocks at present.

Unlike the continuous bullishness in the previous year, investors have also begun to worry that huge investments in artificial intelligence cannot be exchanged for the expected returns.

In particular, in the past two weeks, many investors have withdrawn a large amount of technology stocks due to the pessimistic sentiment about the expected return of the AI industry, chose to arbitrage and run away, and shifted funds to banks and cyclical companies.

Nvidia, Apple, Microsoft, Google and other giants are all victims of this panic mentality.

However, starting from this week, technology giants and unicorns have all released their second-quarter financial reports, which relieved people's concerns to a certain extent and prompted people to pour into the technology industry again.

In the first six months of this year, Nvidia's stock price has risen by 150%, and then the better-than-expected inflation made everyone bet that the Federal Reserve may cut interest rates as soon as September.

This news finally waited for the official announcement. On Wednesday, Federal Reserve Chairman Jerome Powell said that the interest rate cut in September is a sure thing.

After Powell released the signal of the interest rate cut in September, the three major US stock indexes all rose. By the close of the day, the Nasdaq index of US stocks rose by 2.64%, the S&P 500 index rose by 1.58%, and the Dow index rose by 0.24%.

Influenced by the favorable macro policies, investors' enthusiasm for the technology industry and Nvidia has also further heated up.

Top 10 in single-day market value increase

After Wednesday's surge, Nvidia became the first stock with a single-day increase of more than 300 billion US dollars. On the top 10 list, Nvidia not only occupies half of the seats, but also takes the top three.

This year on February 22 and May 23, Nvidia's single-day market value also increased by 276.6 billion US dollars and 217.7 billion US dollars respectively.

Nvidia's strong stock price growth is inseparable from the revenue growth worldwide.

According to the data of Statista, in the fiscal year 2024, Nvidia's total revenue exceeded 60 billion US dollars, and the revenue in the United States reached 26.97 billion US dollars, a significant increase from 8.29 billion US dollars in the previous fiscal year.

In the fiscal year 2024, the revenue in Taiwan, China was 1.341 billion US dollars, and the revenue in the Chinese mainland was 10.31 billion US dollars.

In addition to Nvidia, the listed Google's parent company Alphabet has announced its second-quarter financial report, and another large technology company on the list, Meta, is scheduled to release its financial report after the close of trading on Wednesday.

Microsoft drives up, dark horse chip stocks

The reason why Nvidia's stock price has ushered in a surge again is mainly due to the fact that the major customers Microsoft and AMD both announced their new quarterly financial reports on Tuesday.

The Microsoft financial report shows that the capital expenditure in the second quarter was as high as 19 billion US dollars, an increase of 77.6% year-on-year, greatly exceeding the analyst's expectations.

Almost all of Microsoft's second-quarter capital expenditure in cloud computing and AI-related expenditures, and it is expected that the expenditure will continue to rise环比, and the computing power industry chain in artificial intelligence, such as AI servers, chips, storage, etc., still dominates the investment.

Microsoft CEO Satya Nadella and chief financial officer Amy Hood said that the company plans to invest more funds on Nvidia's infrastructure next year.

According to AMD's second-quarter financial report, the second-quarter achieved revenue of 58.35 billion US dollars, an increase of 8.9% year-on-year; the net profit was 2.65 billion US dollars, an increase of 881% year-on-year, and an increase of 115% quarter-on-quarter. Continuing to exceed the market expectations, this immediately made the US technology stocks boil again.

In addition, Meta also released its second-quarter financial report after the close of trading on Wednesday. Among them, both revenue and profit were higher than expected, the quarterly capital expenditure was less than expected, and the upper limit of the annual capital expenditure range did not change but the lower limit was raised by 2 billion US dollars.

Meta emphasized that the capital expenditure in 2025 will increase significantly, and infrastructure costs are an important driving factor, which will continue to support AI research and product development work.

In addition to the surging Nvidia, US stocks Broadcom rose by more than 8%, ASML and Micron Technology rose by more than 7%, AMD rose by 6%, TSMC and Qualcomm rose by more than 5%.

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This article comes from the WeChat official account: WeChat official account (ID: null), author: New Zhiyuan