Nvidia’s decision to split its shares led to a surge in sales, with the company’s stock price surpassing $1,000 for the first time. On the other hand, Wall Street experienced a downturn due to concerns about inflation after the Federal Reserve’s latest meeting. Meanwhile, Amazon plans to update its Alexa voice assistant with AI technology and offer it as a subscription service. Additionally, former Republican presidential candidate Vivek Ramaswamy acquired an 8% stake in BuzzFeed, causing the media company’s shares to rise.
In a major announcement, the UK Prime Minister called for general elections, which had minimal impact on the market. However, Nvidia, a graphics chip company valued at $2.3 billion, reported long-awaited profits, causing its stock to soar to record levels. The company’s earnings performance led to a significant increase in its share price, with expectations of a $200 billion swing depending on the outcome. Nvidia’s shares rose more than 7% in after-hours trading, reflecting a 92% increase this year and a 200% increase in the last 12 months. The company is at the forefront of the artificial intelligence revolution and is expected to benefit from partnerships with tech giants like Google, Amazon, Apple, and Microsoft.
CEO Jensen Huang expressed optimism about Nvidia’s future growth, likening the company’s potential to that of Cisco in the 1990s. Dan Niles, founder of Niles Investment Management, sees Nvidia following a similar trajectory to Cisco, which experienced a substantial increase in stock price during its peak years. The ongoing development of AI technology by major tech companies further solidifies Nvidia’s position in the market. Nvidia’s forecast of second-quarter sales reaching $28 billion, along with expectations of maintaining a significant market share amidst increasing competition, demonstrates the company’s strong performance.
Overall, Nvidia’s strategic decisions and financial performance have positioned the company for future growth and success in the AI and technology industries. Wall Street will closely monitor Nvidia’s progress to determine its potential for further milestones and market dominance.
Article Source
https://www.cnbc.com/2024/05/23/cnbc-daily-open-nvidia-shares-top-1000-on-ai-boom.html