Nvidia, the prominent chip maker, continues its upward trajectory as it inches closer to surpassing Amazon in terms of market value. After reaching a new record closing high, Nvidia shares are showing signs of growth.
Market Performance
In premarket trading, Nvidia shares were up 0.2% at $702.11. The stock closed at $700.99 on Wednesday, marking a 2.8% increase and setting a new record closing high.
According to FactSet data, Nvidia’s market value reached approximately $1.73 trillion as of the previous day’s close. This puts the company in close proximity to Amazon’s valuation of $1.78 trillion. Nvidia has been consistently narrowing the gap and approaching the e-commerce giant’s market value in recent months.
Comparative Analysis
Based on FactSet data, Nvidia trades at a forward price-to-earnings multiple of around 33 times, while Amazon trades at a multiple of 40 times. This data showcases Nvidia’s strong performance and potential for future growth.
Analysts’ Perspective
Morgan Stanley analysts have shown optimism in Nvidia’s prospects, raising their target price on Nvidia shares from $603 to $750 in a research note released on Wednesday.
Arm Holdings’ Positive Results
Nvidia investors may also find encouragement in the positive results presented by chip designer Arm Holdings. In its earnings report, Arm exceeded expectations and demonstrated market share gains in the cloud server and auto segments. Notably, Arm’s management mentioned Nvidia’s GH200 AI Superchip datacenter systems, which incorporate Arm technology, as a contributing factor to their success.
Industry Comparison
In premarket trading, Arm’s American depositary receipts experienced a 22% increase. Meanwhile, Nvidia’s competitors Advanced Micro Devices and Intel faced slight decreases of 0.8% and 0.1%, respectively.
Recent Performance
Over the past month leading up to Wednesday’s close, Nvidia shares have climbed by 28%. In comparison, the S&P 500 has risen by 4.5% and the Nasdaq Composite Index has seen a 5.2% increase during the same period.
Trading Volume
Nvidia’s trading volume on Wednesday reached 49.6 million shares, surpassing its 65-day average of 43.3 million shares. This indicates high investor interest in the company.
