“Unveiling Nvidia Stock meteoric rise amidst market turbulence! Explore the captivating story of triple-digit gains and unwavering resilience, enticing investors with a staggering 26% surge.”
Nvidia has benefited greatly from the surge in demand for AI processors, resulting in an astounding increase in both revenue and profitability. Nvidia’s stock has increased by an amazing 215% within a year’s time.
The graph demonstrates that the Nvidia Stock’s rise is warranted given how quickly its earnings and revenue have grown in recent quarters.
Nvidia has an impressive 37 price-to-sales ratio. In addition, it is trading at a premium of 90 times trailing profits, exceeding its average of 79 for the previous five years.
Nvidia’s stock saw a slight increase on Wednesday after experiencing a decline the day before. The chip maker’s upward momentum appears to be pausing amidst concerns about a potential market downturn.
In recent trading, Nvidia stock’s rose by 1.4% to $691.98, while the S&P 500 index saw a 0.7% increase.
On Tuesday, Nvidia Stock’s shares closed at $682.23, marking a 1.6% decrease. However, this dip only marginally impacted the substantial gains made over the past year, during which the stock tripled in value due to excitement surrounding its prominent role in supplying chips for AI training.
The slight decline in Nvidia stock’s price on Tuesday may have been prompted by profit-taking, as commentators express growing apprehension about the narrowness of the stock market’s surge, primarily driven by gains in Big Tech stocks.
Stifel analyst Richard Kneller highlighted concerns about the weakening internals of the main U.S. indexes, suggesting an increased susceptibility to significant volatility.
Over the past 12 months, Nvidia stock’s value has surged by more than threefold, currently trading at a price/earnings multiple of approximately 50 times for its 2024 fiscal year ended January, according to FactSet data. Nvidia is scheduled to report its earnings on Feb. 21.
Investor attention may also be drawn to developments in China, where Semiconductor Manufacturing International, the largest domestic chip maker, reported a 55% decline in quarterly profit on Wednesday. Despite continuing heavy investment in production to manufacture the latest smartphone and AI chips for Chinese tech giant Huawei, doubts persist regarding SMIC’s ability to produce chips that can compete with Nvidia’s due to restrictions on access to advanced chipmaking equipment.
Independent analyst Richard Windsor, who publishes Radio Free Mobile, suggested that as SMIC increases chip production, it may incur greater losses or need to charge Huawei more for functional chips.
In Hong Kong, SMIC shares closed down by 8%, while in the U.S., Advanced Micro Devices rose by 2.2% and Intel by 0.7% in recent trading.
Nvidia stock’s has surged by 26% over the past month, outperforming the S&P 500, which saw a 3.6% increase, and the Nasdaq Composite, which rose by 4.3%.
The trading volume ofNvidia Stock’s shares on Tuesday stood at 68.3 million, significantly exceeding its 65-day average of 43.1 million shares.
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