On Thursday, Nvidia Corp. (NVDA) made history by recording the largest single-day jump in market capitalization ever witnessed. This extraordinary feat came on the heels of the chipmaker’s impressive quarterly earnings announcement and a sales outlook that far exceeded analysts’ expectations, propelled by a surging demand for artificial intelligence (AI).
Monumental Market Gains
Nvidia’s stock surged by a staggering 16.4% to close at $785.38, marking a remarkable achievement. This monumental rise added a staggering $272 billion to its market capitalization, eclipsing the previous record set just two weeks prior by Meta Platforms Inc. (META), which saw a $205 billion increase in market cap following its earnings beat and dividend announcement.
Unprecedented Milestone
Before Meta’s record, no company had ever experienced a single-day market cap increase of over $200 billion. However, notable giants like Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) came close, each witnessing gains slightly exceeding $190 billion on separate occasions in 2022.
Impressive Market Position
With Thursday’s surge, Nvidia now boasts a market capitalization of $1.94 trillion, firmly securing its position as the third most valuable company in the United States, trailing only Microsoft Corp. (MSFT) and Apple.
Putting Gains into Perspective
To grasp the magnitude of Nvidia’s unprecedented gains, consider the following comparisons:
- Excluding Nvidia, only 28 companies in the Standard & Poor’s 500 have market capitalizations exceeding $250 billion, with Netflix Inc. (NFLX) being the smallest among them at approximately $254 billion.
- The $250 billion surge in Nvidia’s market cap surpasses half the assets under management of the SPDR S&P 500 ETF Trust (SPY), one of the world’s largest and most widely traded exchange-traded funds (ETFs).
- The combined market value of Goldman Sachs Group Inc. (GS) and Boeing Co. (BA) stands at about $250 billion.
- The collective market cap of the Big Three U.S. automakers—Stellantis NV (STLA), Ford Motor Co. (F), and General Motors Co. (GM)—amounts to $176 billion.
- The world’s top four sporting goods and footwear manufacturers—Nike Inc. (NIKE), Adidas AG (ADDYY), Anta Sports Products Ltd. (ANPDF), and Deckers Brands (DECK)—are valued at a cumulative $244 billion, with Nike accounting for over 60% of that total.
Nvidia’s Market Cap vs. Global Economies
Nvidia’s market cap now surpasses $1.9 trillion, exceeding the gross domestic product (GDP) of all but 11 national economies in 2022. It is on par with Brazil’s GDP ($1.92 trillion) and exceeds Australia’s ($1.69 trillion), underscoring the company’s monumental economic significance.
In conclusion, Nvidia’s record-breaking surge not only highlights its exceptional performance but also underscores its pivotal role in shaping the future of technology and innovation. As it continues to redefine industry standards and drive advancements in AI, Nvidia remains a formidable force in the global market landscape.
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