Nvidia stock’s single-day gain surpasses Reliance’s m-cap

The market capitalisation of Reliance Industries (RIL) at the end of Friday’s trading was Rs 20.2 trillion. That’s humongous, considering that the gap with the second-largest Indian company — Tata Consultancy Services  — is over Rs 5.5 trillion.

But RIL’s total m-cap was less than what Nvidia’s shares gained in just one day. The heavyweight chipmaker added $277 billion (Rs 22 trillion) in stock market value on Thursday, after the company’s quarterly report beat expectations and reignited a rally fuelled by optimism about artificial intelligence. In dollar terms, RIL’s m-cap is less than $250 billion.

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The one-day increase in the stock market value of Nvidia, which controls about 80% of the high-end AI chip market, was also the largest in Wall Street’s history, easily beating a record $196 billion gain by Meta Platforms on February 2 after the Facebook parent declared its first dividend and posted robust results.

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Thursday’s dizzying rise of the stock catapulted Nvidia’s chief executive officer Jensen Huang to the 21st position on the Bloomberg Billionaires Index. His wealth jumped $9.6 billion to $69.2 billion. As recently as early last year, he was  ranked 128th with a net worth of $13.5 billion.

The rise in Nvidia’s market value on Thursday eclipsed the entire value of Coca-Cola, at $265 billion. Its gain made Nvidia the US stock market’s third-most valuable company, pulling ahead of Amazon and Alphabet after jockeying with the two tech powerhouses in recent weeks. Microsoft and Apple, valued at $3.06 trillion and $2.85 trillion, respectively, are Wall Street’s two most valuable companies.

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Nvidia reported a Q4 revenue jump of more than threefold from a year ago to $22.10 billion and beat all expectations. At least 17 brokerages raised their price targets after the results. Among the most bullish, Rosenblatt Securities raised its price target to $1,400 from $1,100, implying a $3.5 trillion stock market value, Reuters reported.

Nvidia’s stock has now climbed 58% in 2024, accounting for more than a quarter of the S&P 500’s increase year-to-date. That makes Nvidia’s outlook crucial not just for direct shareholders, but for owners of index funds widely held in retirement savings accounts.

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