(BFM Bourse) – The graphics processor specialist reached a historic closing high after accounts and forecasts praised by the markets. Nvidia thus gained more in one session than the entire value of the shares listed on the stock exchange of the beauty giant L’Oréal.
It was a record day for Nvidia. The graphics card specialist soared 16.40% to a historic high, closing at $785.38 on Thursday evening on Wall Street. This surge in the stock follows Nvidia’s better-than-expected results and forecasts, the latter being driven by the enthusiasm for its chips dedicated to artificial intelligence.
And for Nvidia, any stock market movement necessarily amounts to tens or even hundreds of billions of dollars, as its communications are scrutinized so closely. Nvidia’s market capitalization – the stock market value of all its shares – jumped by $277 billion on Thursday, according to Companiesmarketcap.com
An unprecedented gain in the history of Wall Street
This is the largest capitalization gain on Wall Street in one session, erasing the precedent of Meta which saw its stock market value jump by $196 billion in early February. Investors then welcomed the good results of Mark Zuckerberg’s group and the distribution of a dividend for the first time.
To see the extent of the phenomenon, Nvidia also gained in one session, more than the value of all of L’Oréal’s shares in Paris which is currently $261.22 billion, again according to Companiesmarketcap.com .
Stephen Innes of SPI Asset Management warned that “the event [la publication des comptes de Nvidia] could lead to one of the largest single-session value creations or destructions in U.S. stock market history on Thursday.”
This capitalization gain, unprecedented in American stock market history, also allows Nvidia to increase its stock market value to $1,963 billion. This valuation of Nvidia on the stock market is as much as Canada’s GDP, also reports Antoine Larigaudrie, BFM Business journalist this Friday morning in Good Morning Business.
Which therefore allows the American tech giant to regain the foot of the podium of the world’s largest capitalizations, behind Microsoft ($3,058 billion), Apple ($2,847 billion) and Saudi Aramco ($2,065 billion).
And the Nvidia effect doesn’t stop there. It also gave a boost to all world stock markets on Thursday. Wall Street ended this session with a double record for its two major indices. The Dow Jones gained 1.2% to close for the first time above 39,000 points at 39,069.11 points Thursday evening, after a record session at 39,149.61 points.
The S&P 500 is not left out. The flagship index of managers ended its race up more than 2% in contact with 5,100 points at 5,087.03 points.
In Paris, the CAC 40 also experienced a historic session, closing for the first time in its history above 7,900 points, at 7,911.60 points this Thursday evening.
The first market capitalization, one day?
As for whether Nvidia can become the world’s largest market capitalization, Frédéric Rozier answered in the negative in a previous article. “I don’t believe in it for a simple reason: Gafam, which are Nvidia’s major customers, will not ultimately agree to depend enormously on a single supplier. Gafam will at least segment the market on graphics processors (by product quality category) and probably do everything to compete”, explained the market expert.
“At present, AMD’s graphics processors are, for example, narrowing the technological gap with Nvidia’s products,” he continued.
Sabrina Sadgui – ©2024 BFM Bourse