May 24, 2023 - Economy

Nvidia continues A.I.-fueled stock rampage

Data: FactSet; Chart: Axios Visuals

Nvidia's stock soared more than 20% after the chipmaker on Wednesday reported much better than expected quarterly results — and upped its forecast for the year, citing "surging demand."

Why it matters: Nvidia is one of the semiconductor companies considered to be at the center of the hype around artificial intelligence, which has supercharged its shares this year.

Context: It's a rare bit of 2021-vintage euphoria for a market still licking its wounds from an awful 2022.

Zoom in: Even before the latest earnings report it was the best-performing stock in the S&P 500, with a gain of 109% in 2023.

  • Now, including today's after hours action, it's up about 160%, at last glance.
  • This year's run has catapulted the company into the top five of the S&P 500 — it's now the fifth largest company in the index, by market cap.
  • Nvidia's market value is now somewhere over $930 billion, leaving market giants like Berkshire Hathaway ($700 billion), Meta ($639 billion) and Tesla ($580 billion) covered in dust.
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