- Nvidia stock rises 3.6% in Tuesday premarket to $403.38.
- Based on the premarket price, NVDA has a market cap of just over $1 trillion.
- Nvidia offered details for its coming AI supercomputer on Memorial Day.
- Nvidia to build an generative AI supercomputer in Israel.
Nvidia (NVDA) stock is the fifth company to join the $1 trillion market cap club on Tuesday. NVDA shares are up 3.6% at the time of writing in Tuesday’s premarket at $403.38. With 2.49 billion shares outstanding at the end of the most recent quarter, that would give Nvidia a market cap of $1.004 trillion.
NASDAQ 100 futures have gained 1.3% early Tuesday.
Nvidia stock news: Working on Memorial Day
Nvidia did not take the day off on Memorial Day. The company released a number of high-profile news releases, more than half a dozen over 48 hours beginning Sunday, that speak to how many different directions the leading semiconductor designer is moving all at once.
First, probably the biggest news is that Nvidia introduced more details regarding its newest supercomputer. The NVIDIA DGX GH200, an AI supercomputer that can be used to develop generative AI models and large analytic data sets, will be available by the end of 2023. It is thought that data center hyperscalers like Microsoft’s (MSFT) Azure, Amazon’s (AMZN) AWS, and Alphabet’s (GOOGL) Google Cloud will be the main customers. Interestingly, these are also three of the four members of the $1 trillion club.
Large language models like OpenAI’s GPT-4 require better compute, and the DGX GH200 is now the leading contender. The supercomputer combines 256 NVIDIA GH200 Grace Hopper Superchips with an architecture that allows it to work like a single GPU. The company says the new supercomputer has 500 times more memory and 48 times more bandwidth than its previous supercomputer released in 2020.
Another important announcement is that Nvidia is building a generative AI supercomputer at its data center in Israel. It will be used as a test run for Nvidia’s Spectrum-X networking platform for ethernet-based AI clouds.
"NVIDIA Spectrum-X is a new class of Ethernet networking that removes barriers for next-generation AI workloads that have the potential to transform entire industries," said Gilad Shainer, senior vice president of networking at Nvidia.
Then there’s Nvidia’s collaboration with Japan’s SoftBank (SOBKY). The companies are joining forces to build a generative AI platform for 5G and 6G applications that will be eventually installed at SoftBank’s Japanese data centers. The platform is said to greatly reduce energy and costs associated with wireless communications.
Lastly, Nvidia has partnered with marketing firm WPP to build a content engine for digital advertising. The content engine will use generative AI applications to allow marketing teams to develop advertising campaigns much more quickly than current technologies.
Nvidia stock forecast: Can NVDA add another 55%?
To put my cards out on the table, I have no real opinion on where the Nvidia stock price is going next. Part of this is that I don’t have the confidence to make a projection, and part of it is that I don’t like what the stock chart is telling me. This is because it’s telling me that NVDA stock could add another 55% from here.
In Tuesday’s premarket, Nvidia stock has left the weekly R2 at $386.11 in the dust. The next stop is the R3 at $465.10. The ascending bottom trendline that NVDA has been using for support is all the way down at $288. But wait, it gets better.
NVDA weekly chart
This type of explosive growth leads us to furtively glance at the monthly chart. When we do, see that the trendline connecting the September 2020 and November 2021 highs that began Nvidia’s explosion in popularity leads directly to the monthly R5 at $623.10. Yes, that’s about 55% above the current price level, and this author feels embarrassed just talking about it. The truth is, however, that few of us saw Nvidia stock tacking on a 25% gain last week. That type of volatility is usually just left to penny stocks and small tech.
NVDA monthly chart
Yes, I know, this seems outlandish, but here’s the way it might happen. Last year’s revenue of $27 billion is expected to grow to more than $62 billion in 2025 (FY 2026). Earnings per share this year of $7.68 is expected to reach $12.23 a share in 2025. With both sales and profits exploding, the current price of 42 times next fiscal year earnings does not seem expensive to many investors for the primary company powering the AI revolution. Add on a suitably-timed buyback announcement, and NVDA could make it up to $623.10 in the next 18 months.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates its rebound to the 1.0930 region, focus remains on US election
Further selling pressure continues to hurt the US Dollar and lends extra support to EUR/USD, motivating it to flirt with the area of four-week peaks past 1.0930, as the US election remains under way.
GBP/USD approaches 1.3050 on weaker Dollar, US election
Further optimism around the British pound and the broad risk complex lends extra legs to GBP/USD and sends it to new multi-day highs near the 1.3050 zone as investors continue to closely follow the developments around the US election.
Gold extends consolidative phase as US election result looms
Gold attracts dip-buyers after touching a one-week low on Tuesday but remains below $2,750. The benchmark 10-year US Treasury bond yield stays in positive territory above 4.3% as markets eye US election exit polls, limiting XAU/USD's upside.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
US election day – A traders’ guide
Election day volatility: Brace for potential wild market swings. Election days bring opportunities, but also risks. Unclear results can increase volatility further.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.