In the dynamic landscape of technology investments, 2023 has proven to be a remarkable year for Nvidia (NASDAQ: NVDA).
Emerging as the frontrunner in capitalizing on the AI frenzy, Nvidia has soared to the top of the charts, securing its position as the best-performing S&P 500 stock this year.
And it seems there’s more to come from the chipmaker’s performance. Notably, Nvidia’s shares rose sharply in after-hours trading on August 23, propelling its stock market price beyond the $500 mark for the first time in the company’s history.
Why is NVDA stock exploding again?
Nvidia’s after-hours market leap comes after the Santa Clara, California-based tech giant unveiled earnings results for the fiscal Q2 2024, which smashed Wall Street’s expectations.
The company generated a whopping $13.51 billion in revenue in the second quarter, well above the consensus estimates of $11.22 billion and up 101% from the year-ago period.
Adjusted earnings per share (EPS) came in at $2.70, compared to the analysts’ estimates of $2.09 per share.
Nvidia said net income soared to $6.19 billion, or $2.48 a share, from $656 million, or 26 cents, in the same quarter of fiscal 2023.
Looking ahead, Nvidia said it expects revenue to hit around $16 billion in fiscal Q3 2024, significantly higher than Wall Street’s projections and would mark a year-over-year increase of 170%.
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”– said Nvidia CEO Jensen Huang in a statement.
Nvidia stock price analysis
At the time of writing on August 24, shares of Nvidia were trading at $509 in Thursday premarket trading, up around 8%, according to TradingView data.
The premarket surge comes after NVDA closed Wednesday trading 3.17% higher at $471.16, just short of its all-time high of $474.94 recorded in July.
Over the past week, the chipmaker saw its share price rally by more than 5.8% and over 5.3% on the month.
Year-to-date, Nvidia skyrocketed nearly 220%, leaving the broader S&P 500’s 16% gains in the dust.
If NVDA manages to uphold its current premarket gains and opens trading at around $509, it would mark a new pinnacle for the tech giant’s stock and propel its market cap to as high as $1.257 trillion, up from the current $1.164 trillion.
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