Nvidia (NVDA) continues to soar, last week surpassing the 1,000 level for the first time last week. Its market capitalization surpassed $2.5 trillion, less than a year after reaching the $1 trillion mark.
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As the artificial intelligence leader continues to deliver massive earnings and sales growth, Nvidia stock appears headed toward a $3 trillion overshoot or challenge. Apple (AAPL) And Microsoft (MSFT) as the most valuable company in the world.
Nvidia stock jumped 15.1% last week to a record 1,064.19, surpassing 1,000. The chip giant increased its market capitalization by $338 billion to $2,661 billion. of dollars. That’s just behind Apple ($2.913 billion) and not far from Microsoft ($3.196 billion).
Nvidia stock had only reached $2 trillion three months earlier, on February 23.
At the end of last year, Nvidia had a market capitalization of $1.22 trillion, behind Google’s parent company. Alphabet (GOOGLE) And Amazon.com (AMZN) in addition to Apple and Microsoft. Out of Magnificent Seven shares, Nvidia only had a higher valuation than Metaplatforms (META) And You’re here (TSLA).
Nvidia Earnings
On May 22, Nvidia released its earnings per share for the first quarter of 2025 of $6.12, up 461% from a year earlier, with revenue up 265% to $26.04 billion. The business has also grown.
Although year-over-year comparisons become difficult, analysts expect Nvidia’s earnings to jump 107% in fiscal 2025 to $26.85 per share, followed by a gain of 31% in fiscal 2026 to $35.12.
Keep in mind that Nvidia only earned $3.34 per share in fiscal 2023.
Microsoft, Apple, and the other Magnificent Seven stocks have various catalysts, but much of this reflects AI growth, or at least hopes for AI growth that are good news for Nvidia. Megacap Technologies spends heavily on AI, with much of it going directly into Nvidia chips.
Why Nvidia Stock’s Skyrocketing Might Be Just the Start of a Monster Ride
NVIDIA Stock
Nvidia stock is up 115% so far in 2024 as of May 24 after leading the S&P 500 with a 238.9% rise in 2023.
This year, it is by far the best performing member of the Magnificent Seven, with Meta stock trailing far behind with a 35% rise. Tesla stock, also a clear outlier in terms of earnings and valuation, is leading the decline with a 27.9% decline in 2024.
Microsoft stock is at all-time highs, rising a more modest 14.4% in 2024. Apple stock is down 1.3%, even with a strong rebound in May.
Nvidia Milestones
Nvidia closed above a $1 trillion market cap on June 13, 2023. On February 23, 2024, NVDA stock topped $2 trillion.
On May 23, Nvidia surpassed the 1,000 level and the $2.5 trillion mark.
Nvidia’s next milestones
At the current valuation of $2.662 billion, Nvidia only needs a 12.8% advance to reach $3 trillion. This would also boost Apple’s current valuation and significantly narrow the gap with Microsoft.
Nvidia stock rose 3% early Tuesday.
Please follow Ed Carson on the discussions at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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