-
Nvidia shares rose 31% in eight days, increasing its market value by $765 billion.
-
The stock’s rise was nearly three times the 11% gain in the Nasdaq 100 over the same period.
-
Wall Street analysts remain bullish on Nvidia ahead of its earnings report due next week.
Shares of Nvidia have risen 31% since the last time it closed below $100 per share on Aug. 7. The mega-tech company added $765 billion to its market cap in just eight trading days.
The massive gain for Nvidia shares from August 7 through August 19 is nearly three times the 11% gain for the Nasdaq 100 over the same period.
The meteoric gain represents Nvidia’s biggest eight-day gain since it broke out with a blockbuster AI-powered earnings report in May 2023, when it gained 33% in less than two weeks. It also represents Nvidia’s biggest eight-day absolute market cap gain ever.
The V-shaped recovery in Nvidia shares over the past two weeks coincided with a broad rally in the stock market as investors reacted positively to encouraging economic data that dispelled fears of a looming recession.
From Nvidia’s July 10 closing price of nearly $135, the stock fell 27% through Aug. 7 as investors worried about an economic slowdown, reports of delays to Nvidia’s next-generation Blackwell AI GPU, and questions about a slowdown in AI spending amid questionable progress in monetization efforts by companies that buy Nvidia’s AI GPU chips.
But if we look ahead to Monday’s closing price of $130 per share, Nvidia stock is just a few percentage points away from a record high.
Whether the historic rally in Nvidia shares can continue will largely depend on the company’s upcoming earnings report, scheduled to be released next week.
Wall Street analysts remain optimistic about Nvidia’s earnings figures.
Wedbush analyst Matt Bryson told CNBC on Monday: “Everyone is committed to AI spending via the Blackwell launch. So you’ve got another year-plus of increased AI spending,” Bryson said. “I still have a buy rating and I think we’re going to get another quarter from Nvidia that, again, is a beat and raise. They’ve done it consistently. There just doesn’t seem to be any change in momentum from their customer base.”
And Mizuho CEO Vijay Rakesh took advantage of the sharp drop in Nvidia’s stock price earlier this month to raise his price target on the stock, in what turned out to be a prophetic decision.
“Demand remains unchanged,” Rakesh said in a message to clients. “NVDA continues to lead.”
The Nvidia stock rally is also a big win for co-founder and CEO Jensen Huang. His net worth has risen by $27 billion to $114 billion since Aug. 7, according to Bloomberg data. That makes him the world’s 11th richest person.
Nvidia currently has a market cap of $3.15 trillion and its $765 billion gain in market cap over eight trading days is greater than the value of major companies like Tesla, JPMorgan and Walmart.
Read the original article on Business Insider
