Nvidia’s market capitalization crossed the $2 trillion mark in intraday trading Friday but fell short of closing at the level.
Shares of the chip maker gained 0.4% to $788.67, adding to Thursday’s big gains fueled by bumper earnings.
Only
Apple
and
Microsoft
have closed at the $2 trillion level. It took both companies more than two years to get there after passing $1 trillion. If Nvidia does the same soon, it will have done so in less than a year, having closed above the $1 trillion mark for the first time in June 2023.
Alphabet
surpassed $2 trillion in intraday trading but hasn’t closed at that level.
The chip maker’s stock rose 16% to close at $785.38 on Thursday which gave it a market valuation of $1.96 trillion following its blowout earnings report.
The company’s dominance in providing the hardware to power artificial-intelligence systems has led it to outpace even the other Magnificent 7 stocks. But some on Wall Street are watching for signs of a slowdown in its rapid growth.
UBS analyst Timothy Arcuri broke with the trend of applauding Nvidia’s results and lowered his price target on the stock.
Arcuri lowered his target price on Nvidia to $800 from $850 in the wake of the earnings, citing a potential slowing of revenue growth, although he kept a Buy rating on the stock. Arcuri said his new target price was based on a price-to-earnings multiple of 25 times the UBS forecast for Nvidia’s earnings in calendar year 2025.
“We were somewhat surprised that total supply…was actually down a touch Q/Q [quarter-on-quarter] and our analysis on the surface begs the conclusion that Nvidia may be approaching some sort of ‘steady state’ in revenue over the coming quarters,” Arcuri wrote in a research note on Thursday.
With no additional increases in supply, Arcuri estimated that Nvidia can support revenue of around $27 billion a quarter, compared with $22.1 billion for the quarter ended January.
Nvidia shares have gained 59% this year to date through to Thursday’s close. That compares with a 6.7% gain for the
S&P 500
and a 6.9% rise in the
Nasdaq Composite
over the same period.
Write to Adam Clark at [email protected]
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