May 21, 2024
Corporate Finance

NVIDIA Surpasses $1 Trillion Stock Value Surge In Q1 2024

Outpaces Entire 2023 Growth By 15%

NVIDIA, the US-based chipmaker, continues its meteoric rise in the stock market, setting new records after closing 2023 as the top performer in the S&P 500 index with a remarkable gain of 236%.

Bolstered by stellar Q4 results, the tech giant has surged by over $400 billion in stock value within a month. However, the company’s performance in the first quarter of 2024 exceeded these extraordinary feats.

Data compiled by Stocklytics.com reveals that NVIDIA has added more than $1 trillion to its stock value during the initial three months of the year, marking a staggering 15% increase compared to its entire growth throughout 2023.

This monumental surge in stock value not only outstrips the combined gains of significant tech players Microsoft, Alphabet, and Meta but also underscores NVIDIA’s dominance in the tech industry.

Top Ranking

Since unveiling ambitious projections for its role in the artificial intelligence landscape, NVIDIA has consistently led the charge in the AI-driven market rally, propelling the S&P 500 index to historic highs.

With each earnings announcement, the chipmaker has witnessed a substantial uptick in stock price, catapulting its overall value by more than sixfold in under eighteen months.

In 2023 alone, NVIDIA witnessed an astounding uptick of nearly $880 billion in stock value, soaring from $359 billion in January to over $1.1 trillion by December—however, the company’s performance in the first quarter of 2024 eclipses even this remarkable achievement.

NVIDIA’s stock value surged from January to March to more than $1 trillion, representing a $145 billion increase compared to the preceding year. Consequently, the AI juggernaut’s market capitalisation has skyrocketed to $2.25 trillion, indicating a colossal 529% surge since December 2022.

Moreover, NVIDIA’s stock price rally in 2024 has yielded significantly more significant gains compared to its counterparts in the AI sector.

In The Fray

Meta, for instance, witnessed a $350 billion uptick in stock value during the same period, amounting to three times less than NVIDIA’s growth. Microsoft and Alphabet followed suit with gains of $337 billion and $125 billion, respectively.

Collectively, these three companies bolstered their stock values by approximately $812 billion in Q1, representing a nearly 20% shortfall compared to NVIDIA’s surge.

With its recent stock value surge, NVIDIA has emerged as the third-largest tech company globally by market capitalisation, surpassing industry behemoths such as Amazon, Alphabet, and Meta Platforms and trailing only behind Microsoft and Apple.

However, if the chipmaker sustains its current growth trajectory, it could soon accomplish a feat that would be a game-changer in the tech industry – usurping Apple’s position to become the world’s second-largest tech company.

Apple currently commands a market capitalisation of $2.62 trillion, holding a $366 billion lead over NVIDIA.

Nonetheless, the chipmaker has demonstrated its capacity to bridge this gap swiftly, adding a figure equivalent to Apple’s lead in market cap just one month after releasing its latest earnings report.

Featured image: NVIDIA can yet usurp Apple to become the world’s second-largest tech company. Credit: Christian Wiediger

    Middle East News 247

    Middle East News 247

    Middle East News 247 delivers the latest business and lifestyle news and essential infotainment for, and from the Middle East region, with key focus on the GCC nations: United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman.
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