Nvidia's Share Price Surge From Below $100 to Record Highs and Beyond
On August 21 Beijing time, on August 7 this year, Nvidia's share price closed below the $100 mark. But since then, Nvidia's share price has soared by more than 30%, and its market capitalization has increased by $765 billion in just eight trading days, which is even higher than Tesla's total market capitalization.
From August 7 to August 19 this year, Nvidia's share price has increased by 31%, almost three times the 11% increase of the Nasdaq 100 index in the same period, setting the largest eight-trading-day increase since May last year. In May 2023, driven by the artificial intelligence boom, Nvidia released an explosive earnings report, stimulating the share price to increase by 33% in less than two weeks. The $765 billion increase in market capitalization also set the largest eight-trading-day absolute market capitalization increment on record for Nvidia.
Nvidia's current market capitalization is $3.15 trillion, and this $765 billion increase in market capitalization is higher than the total market capitalization of some large companies, including Tesla, JPMorgan Chase, and Walmart. As of Tuesday's close, Tesla's market capitalization was $706.3 billion.
Nvidia's sharp rise in its stock is also a major victory for its co-founder and CEO Jensen Huang. According to the Bloomberg Billionaires Index, since August 7 this year, his net worth has soared by $27 billion to $114 billion, becoming the 11th richest person in the world.
Over the past two weeks, Nvidia's share price has achieved a V-shaped rebound, which is in line with the recovery performance of the entire stock market. Investors have welcomed encouraging economic data, which helps dispel concerns about an impending recession.
On July 10 this year, Nvidia's share price closed close to the historical high of nearly $135, but by August 7, the stock had plummeted 27%, due to various reasons, including investors' growing concerns about the economic slowdown, reports that Nvidia's next-generation Blackwell artificial intelligence GPU was delayed in its listing, and doubts about the progress in revenue generation by companies that purchased Nvidia's artificial intelligence GPU chips, triggering concerns about a slowdown in artificial intelligence spending.
But by Monday this week, Nvidia's share price closed at $130, only a few percentage points away from the record high. Whether Nvidia's historic rally in share price can continue largely depends on the earnings report that the company will release next week.
Wall Street analysts still firmly optimistic about Nvidia's upcoming earnings report. Matt Bryson, an analyst at Wedbush Securities, said on Monday: Everyone is committed to continuing to invest in AI through the release of the Blackwell chip. Therefore, AI spending will remain at a high level in the next year or more. I still maintain a buy rating on Nvidia's stock, and I think Nvidia's next quarterly earnings report will again exceed expectations and the share price will rise. They have been continuously doing this. The momentum of the customer base seems to have not changed at all.
Vijay Rakesh, a managing director at Mizuho Securities, seized the opportunity of Nvidia's sharp drop in share price earlier this month and raised the target price of the stock, which proved to be prescient. The demand remains unchanged, Rakesh said in a report to clients, and Nvidia will continue to lead this trend.