NVIDIA crushes records, gains $277B in m-cap in single day
NVIDIA posted a fourth-quarter revenue of $22.1 billion, a huge leap from last year's $6.05 billion, and surpassing estimates of $20.62 billion. The chipmaker's shares skyrocketed, achieving a record-breaking 16% surge that added around $277 billion to the company's market cap, pushing its total value close to $2 trillion. This massive single-day gain outshines Meta's record of $197 billion set just three weeks before. NVIDIA's impressive market rally has made it the third most valuable company in the US.
NASDAQ at record high, boosted by NVIDIA's strong performance
NVIDIA's extraordinary performance also positively impacted the NASDAQ index, which jumped 2.5% or 388 points to 15,968. The Dow Jones Industrial Average increased by 0.71% or 274 points to 38,887, and the S&P 500 rose by 85 points or 1.7% to 5,067. All three indices experienced a strong opening on February 22, with NVIDIA's exceptional earnings playing a significant role in boosting market sentiment.
Strong guidance driven by AI spending by tech giants
NVIDIA's positive guidance surpassed Wall Street predictions, thanks to increased AI investments from major clients like Microsoft and Meta. The company forecasts a 233% revenue growth for the first quarter, ahead of the anticipated 208% growth, with an estimated revenue of $24 billion for the current quarter. Additionally, NVIDIA expects an adjusted gross margin of 77% or minus 50 basis points, outperforming its average analyst forecast of 75.6%.
