Quick Summary
- Nvidia shares surged 8.7% on Thursday, increasing market capitalization by $442 billionāthe second-highest single-session gain recorded in market history
- Second-quarter revenue reached $96.22 billion, representing a 105.9% year-over-year increase and surpassing analyst projections of $92.27 billion
- Management forecasted 70% revenue expansion for the upcoming fiscal year, significantly exceeding the 45% consensus expectation
- Shares began Friday trading at $227.98, valuing the company at approximately $5.52 trillion
- Wall Street analysts hold a “Moderate Buy” rating with a consensus price objective of $322.61
Nvidia’s shares experienced a dramatic 8.7% rally on Thursday following the release of exceptional quarterly results and future revenue projections that significantly exceeded Street expectations. Trading commenced Friday at $227.98 per share.
For the second quarter, the chipmaker delivered earnings per share of $2.22, topping consensus projections of $2.09. Quarterly revenue totaled $96.22 billion, marking a 105.9% year-over-year jump and exceeding the $92.27 billion analyst forecast.
However, the company’s forward-looking guidance captured the most attention. Management projected approximately 70% revenue growth for the next fiscal year, substantially outpacing the 45% expansion rate Wall Street anticipated.
Bloomberg Intelligence characterized the guidance as “jaw-dropping,” suggesting it represents over $100 billion in potential upside compared to existing Street estimates.
JPMorgan suggested the company’s outlook may actually be understated. Analysts from the bank highlighted that Nvidia “explicitly characterized the outlook as supply-constrained, with unconstrained demand pacing materially higher.”
Historic Single-Session Market Value Increase
Thursday’s 8.7% rally boosted Nvidia’s market capitalization by $442 billion within a single trading day. This represents the second-highest one-day market value increase ever recorded, behind only Microsoft’s $450 billion jump that occurred less than a month earlier.
Nvidia previously captured that record when it gained $440 billion in market value following President Trump’s announcement of a 90-day tariff suspension in April of last year.
The chip giant also maintains the dubious distinction of recording the largest single-day market capitalization decline, shedding nearly $600 billion amid worries surrounding China’s DeepSeek AI platform.
With a current valuation of approximately $5.52 trillion, Nvidia stands as the world’s most valuable publicly traded company.
Wall Street Price Targets and Institutional Holdings
Following the earnings release, Sanford C. Bernstein increased its price objective on Nvidia from $315 to $400 while maintaining an “outperform” designation. Truist Financial elevated its target from $307 to $346 with a “buy” recommendation.
Overall, 48 analysts assign a Buy rating to the stock, two rate it Strong Buy, and four maintain Hold ratings. The average price target among analysts stands at $322.61.
Institutional ownership accounts for 65.27% of outstanding shares. State Street Corp maintains a position exceeding 991 million shares valued at approximately $184.9 billion. Geode Capital Management controls over 588 million shares worth roughly $109.4 billion.
Company insiders and directors have collectively divested 1.9 million shares valued at approximately $410 million during the previous 90-day period.
Nvidia’s board has greenlit an $80 billion stock repurchase authorization. Additionally, the company announced a quarterly dividend of $0.25 per share, scheduled for October 1 distribution to shareholders on record as of September 10.
The stock has traded between $164.07 and $236.54 over the past 52 weeks, with current 50-day and 200-day moving averages positioned at $207.95 and $200.66, respectively.
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