By Emily Bary
Nvidia bidding to be the seventh U.S. company to close with a market capitalization above $1 trillion
Nvidia Corp.'s stock fell short of closing with a $1 trillion valuation despite flirting intraday with levels that would have helped the chip giant achieve the milestone.
Shares ended Tuesday's session at 401.11, giving the company a market capitalization of $990.7 billion. They needed to close at $404.858 or above in the regular session for Nvidia (NVDA) to achieve a market capitalization upwards of $1 trillion, according to Dow Jones Market Data. The shares touched an intraday high of $419.38 in Tuesday's action.
Only six U.S. companies -- Alphabet Inc. (GOOGL)(GOOGL), Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Meta Platforms Inc. (META), Microsoft Corp. (MSFT) and Tesla Inc. (TSLA) -- have closed in $1 trillion territory.
Nvidia's stock gained 3% Tuesday following product announcements a day earlier, including its new Grace Hopper supercomputer and its first ethernet networking offering. These showed that Nvidia is "not standing still" but rather "running as fast as [it] can and extending [its] already dominant lead," according to Evercore ISI analyst C.J. Muse.
Read: Wall Street tech darling Nvidia unveils more AI products -- including a new supercomputer
While Nvidia teased the ethernet debut on its last earnings call, Wells Fargo analyst Aaron Rakers noted that the announcement illustrated Nvidia's "deepening enterprise strategy" with a product the company says will help in the deployment of generative artificial intelligence, the type of AI popularized by ChatGPT.
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The stock's Tuesday rally built on a year-to-date surge that hit high gear last week as Nvidia stunned Wall Street with its expectations for how AI-fueled demand for its data-center products would translate into financial performance. The company vastly exceeded consensus expectations with its revenue forecast for the current quarter, helping to send shares up 24.4% in a single day last week.
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Nvidia shares are now ahead 174% so far this year.
Rosenblatt Securities analyst Kevin Cassidy wrote in a weekend note that Nvidia's forecast, which implies 50% sequential growth for the July quarter, is one of the "historical and defining moments of a significant cycle which we view as secular and call the Mother of All Cycles." Marvell Technology Inc.'s (MRVL)outlook was another key moment in that narrative, according to Cassidy.
Read:Marvell stock rockets more than 30%, its best day ever -- is it the next hot AI play?
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May 30, 2023 17:04 ET (21:04 GMT)
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