Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Nvidia surpasses $3.6 trillion market value after Trump win

Published 11/07/2024, 04:34 PM
Updated 11/07/2024, 04:41 PM
© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
NVDA
-

By Noel Randewich

(Reuters) - Shares of Nvidia (NASDAQ:NVDA) rallied to a record high on Thursday, making the chipmaker the first company in history to surpass a stock market value of $3.6 trillion as Wall Street extended a rally sparked by Donald Trump's return to the White House.

The dominant AI chipmaker's shares rose 2.2%, lifted by broad investor optimism about tax cuts and lower regulations after the Republican candidate's Tuesday election victory.

Nvidia's stock market value ended the day at $3.65 trillion, beating Apple (NASDAQ:AAPL)'s record closing market capitalization of $3.57 trillion reached on Oct. 21, before the chipmaker on Tuesday overtook the iPhone maker as the world's most valuable company, according to LSEG data.

Apple's stock rose 2.1% on Thursday, leaving it with a market value of $3.44 trillion.

The S&P 500 technology index has surged over 4% in the two sessions since Trump won the election on Tuesday. 

Nvidia has been the U.S. stock market's biggest winner from a race between Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and other heavyweights to build out their AI computing capacity and dominate the emerging technology.   

The Silicon Valley chip designer's stock has climbed 12% in November, with its value tripling so far in 2024.

Following this year's surge, Nvidia now exceeds the combined value of Eli Lilly (NYSE:LLY), Walmart (NYSE:WMT), JPMorgan, Visa (NYSE:V), UnitedHealth Group (NYSE:UNH) and Netflix (NASDAQ:NFLX).

Analysts on average see Nvidia increasing its quarterly revenue by over 80% to $32.9 billion when it reports its results on Nov. 20, according to LSEG.

© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

In June, Nvidia briefly became the world's most valuable company before it was overtaken by Microsoft and Apple. The tech trio's market capitalizations have been neck-and-neck for several months.

Microsoft's market value stood at nearly $3.16 trillion, with its stock up 1.25% on Thursday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.