Nvidia stock was trading slightly lower on Thursday after reaching a new closing high the previous day. The chip maker is close to overtaking Amazon in terms of market value after its recent rally.
Nvidia
stock was down 0.0.3% at $700.77 at 9:56 a.m. The stock closed up 2.8% at $700.99 on Wednesday, setting a new record closing high.
Nvidia’s market value stood at around $1.73 trillion as of Wednesday’s close according to FactSet. That puts it close to
Amazon’s
$1.78 trillion valuation. Nvidia has been steadily closing in on the e-commerce giant’s market value in recent months. Nvidia trades at a forward price-to-earnings multiple of around 33 times according to FactSet, while Amazon trades a forward price-to-earnings multiple of 40 times.
Analysts at Morgan Stanley raised their target price on Nvidia shares to $750 from $603 in a research note on Wednesday.
Nvidia investors might be heartened by results from chip designer
Arm Holdings,
which beat expectations for its earnings and outlook in its own report after the close on Wednesday. Arm management said it was gaining market share in the cloud server market and auto segments and specifically cited the coming Nvidia GH200 AI Superchip datacenter systems, which incorporate Arm technology.
Arm’s American depositary receipts were up 22% in premarket trading. Among Nvidia’s chip maker peers,
Advanced Micro Devices
was down 0.8% and
Intel
was down 0.1%.
Nvidia shares have risen 28% over the last month through to Wednesday’s close. That compares with a 4.5% rise in the
S&P 500
and 5.2% rise in the
Nasdaq Composite
Index over the same period.
Nvidia’s trading volume of 49.6 million shares on Wednesday was ahead of its 65-day average of 43.3 million shares.
Write to Adam Clark at [email protected]
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