{"id":14175,"date":"2023-05-26T11:00:05","date_gmt":"2023-05-26T15:00:05","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/nvidia-could-join-the-1-trillion-stock-club-how-much-it-needs-to-gain\/"},"modified":"2023-05-26T11:00:06","modified_gmt":"2023-05-26T15:00:06","slug":"nvidia-could-join-the-1-trillion-stock-club-how-much-it-needs-to-gain","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=14175","title":{"rendered":"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain."},"content":{"rendered":"
\n

\n Nvidia
\n might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear.<\/p>\n

Shares of Nvidia (ticker: NVDA) surged 24% on Thursday after an earnings and guidance release that has been described as \u201cincredible,\u201d \u201cunfathomable,\u201d and the \u201cgreatest beat of all time.\u201d <\/p>\n

\n

That\u2019s not hyperbole. Nvidia reported a first-quarter profit of $1.09 a share, ahead of forecasts for 92 cents, while offering second-quarter revenue guidance of $11 billion, nearly $4 billion more than the $7.15 billion consensus.<\/p>\n

What\u2019s more, the guidance boost doesn\u2019t appear to be the result of a one-time surge in demand for chips with enough power to handle artificial intelligence. On the company\u2019s earnings call, Nvidia Chief Financial Officer Colette Kress said, \u201cGenerative AI drove significant upside in demand for our products, creating opportunities and broad-based global growth across our markets,\u201d and that the company was already taking steps to meet high demand during the second half of Nvidia\u2019s fiscal year.<\/p>\n

The strong demand should push gross margins above 70% during the second quarter, up from 66.8% during the first, which Susquehanna analyst Christopher Rolland attributes to the H100 card that can \u201cspeed up large language models\u2026by an incredible 30X over the previous generation\u201d and costs $20,000. <\/p>\n

All told, Rolland says that Nvidia\u2019s four segments\u2014auto, data center, gaming, and professional visualization\u2014could grow at a rate at least three times that of semiconductors generally. \u201cIt looks like the new gold rush is upon us, and Nvidia is selling all the picks and shovels,\u201d Rolland writes. He upped his price target on the stock to $450 from $350.<\/p>\n

The recent gains in both the stock and the business give Nvidia a chance to do something no chip company has done\u2014cross $1 trillion in market capitalization.
\n Intel
\n (INTC), which slumped on Thursday, peaked at $501.51 billion in August 2000\u2014$901.30 billion in today\u2019s dollars\u2014while
\n Taiwan Semiconductor Manufacturing
\n (TSM) peaked at $642.1 billion in January 2022. After Thursday\u2019s gain, Nvidia is worth $939.3 billion, based on a share count of 2.473 billion. That puts it $60.7 billion away from the $1 trillion mark, a level that would be reached if the stock hits $404.86, more than 6% away from today\u2019s close of $379.80. <\/p>\n

It\u2019s not just chip stocks that have had trouble hitting the $1 trillion mark. Just six U.S. stocks have crossed that threshold\u2014
\n Apple
\n (AAPL), Amazon.com (AMZN), Alphabet (AMZN), Microsoft (MSFT), Meta Platforms (META), and
\n Tesla
\n (TSLA)\u2014and Tesla and Meta weren\u2019t able to stay there. Hitting $1 trillion is a big deal. <\/p>\n

Needham analyst Rajvindra Gill saw that coming back in 2021, although it has been a bumpy ride since the call. Nvidia stock tumbled 50% last year as tech stocks got hammered by the Federal Reserve\u2019s rising rates and slowing growth. But the demand for Nvidia\u2019s products is coming from everywhere: Big Tech companies like
\n Microsoft,<\/span><\/p>\n

Alphabet,<\/span>
\n and
\n Amazon.com
\n ; internet companies like
\n Meta
\n ; and even biotech companies like
\n Amgen
\n (AMGN), to name a few. <\/p>\n

\u201cWe see nearly all past headwinds behind us, and expect the company is shipping to true, AI-related demand, near-term,\u201d writes Gill, who has a $460 price target on the stock. \u201cWhile there [were] some peaks and valleys in the interim years, we believe NVDA is in a position to achieve that valuation over time.\u201d<\/p>\n

But how much higher can Nvidia really go? In the short term, perhaps not very far. Katie Stockton, founder of Fairlead Strategies, notes that the stock\u2019s move higher on Thursday will generate sell signals on weekly and daily bases. \u201cThis suggests a short-term peak is likely in the long-term uptrend,\u201d she writes.<\/p>\n

But after that, who knows?<\/p>\n

Write to Ben Levisohn at ben.levisohn@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker: NVDA) surged 24% on Thursday after an earnings and guidance release that has been described as \u201cincredible,\u201d \u201cunfathomable,\u201d and the \u201cgreatest beat of all time.\u201d That\u2019s not hyperbole. Nvidia reported a first-quarter […]<\/p>\n","protected":false},"author":1,"featured_media":14176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-14175","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nNvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker:\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=14175\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker:\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=14175\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-26T15:00:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-26T15:00:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1685113206_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=14175#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=14175\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain.\",\"datePublished\":\"2023-05-26T15:00:05+00:00\",\"dateModified\":\"2023-05-26T15:00:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=14175\"},\"wordCount\":625,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=14175#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=14175\",\"url\":\"https:\/\/ifintechworld.com\/?p=14175\",\"name\":\"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-26T15:00:05+00:00\",\"dateModified\":\"2023-05-26T15:00:06+00:00\",\"description\":\"Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker:\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=14175#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=14175\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=14175#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain. | iFintechWorld","description":"Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker:","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=14175","og_locale":"en_US","og_type":"article","og_title":"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain. | iFintechWorld","og_description":"Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker:","og_url":"https:\/\/ifintechworld.com\/?p=14175","og_site_name":"iFintechWorld","article_published_time":"2023-05-26T15:00:05+00:00","article_modified_time":"2023-05-26T15:00:06+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1685113206_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=14175#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=14175"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain.","datePublished":"2023-05-26T15:00:05+00:00","dateModified":"2023-05-26T15:00:06+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=14175"},"wordCount":625,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=14175#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=14175","url":"https:\/\/ifintechworld.com\/?p=14175","name":"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-26T15:00:05+00:00","dateModified":"2023-05-26T15:00:06+00:00","description":"Nvidia might become the world\u2019s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear. Shares of Nvidia (ticker:","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=14175#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=14175"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=14175#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Nvidia Could Join the $1 Trillion Stock Club. How Much It Needs to Gain."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/14175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14175"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/14175\/revisions"}],"predecessor-version":[{"id":14177,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/14175\/revisions\/14177"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/14176"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}