Nvidia Stock Briefly Rises To All-Time High In Rollercoaster Post ...
Nvidia stock touched its highest price ever Thursday morning in a mixed investor reaction to the artificial intelligence behemoth’s earnings report released Wednesday afternoon, as the world’s largest company flirts with becoming the first firm to ever score a $4 trillion valuation.
Nvidia stock suffered a $300 billion swing Thursday morning.
Getty Images Key FactsShares of Nvidia rose as much as 4.8% shortly after 9:30 a.m. EST’s market open.
That early rise set a new record intraday share price of $152.89, equating to a market capitalization of $3.76 trillion for Nvidia.
But the stock soon turned negative, moving with the initial negative stock reaction to the quarterly results in limited Wednesday evening trading.
Shares were down 3.6% to $140.70 by 10:30 a.m. Thursday, an 8% negative swing from the earlier highs, recovering to a 1% daily loss to about $144 by 11:15 a.m.
The swing came amid an unusually high-volume trading session, with more than 200 million Nvidia shares trading hands in the first 100 minutes of trading, topping the stock’s median full-day volume over the prior 20 trading sessions of 196.5 million, according to Yahoo Finance data.
$300 billion. That’s roughly how much market value Nvidia lost in the hour its share price fell from nearly $153 to below $141. Only 25 American companies are worth at least $300 billion.
Key BackgroundNvidia stock’s downward swing followed what’s known as a triple earnings beat, in which the company easily exceeded consensus analyst forecasts for its third-quarter profit and revenue and raised its guidance for the fourth quarter. Unsurprisingly, the analyst reaction was overwhelmingly positive to the earnings release, as 26 of the 30 analyst share price targets updated after earnings moved upwards, according to FactSet. But the negative stock move is likely a result of the high-growth company forecasting just 7% quarter-over-quarter sales growth in the current period, which, though expected by experts, would be the slimmest expansion in two years and fell short of exceeding the most bullish expectations.
Crucial Quote“The mix” of Nvidia’s strong earnings beat was “more heavily skewed” toward the third quarter and therefore the company’s outlook “was only ‘in-line’ with investor expectations, which is “a deviation from prior quarters,” explained Deutsche Bank analyst Ross Seymore in a note to clients.
What To Watch ForIf Nvidia can become the first company to score a $4 trillion market capitalization after trading within 6% of the milestone. The company needs a roughly $163 share price to hit the milestone, below the more than $180 price targets held by analysts at the likes of Bank of America, Jefferies and Wells Fargo.
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