Nvidia's Stock Soars, Market Capitalization Rises by $765 Billion in Just 8 Days

Since August 7, when Nvidia's stock dropped below the $100 mark, the share price has surged by 31%, boosting the company’s market capitalization by an additional $765 billion in just eight trading days. This is Nvidia’s strongest price rally since the company reported impressive revenue results in May 2023 and marks the largest market capitalization increase recorded over an eight-day period.

Nvidia’s stock price increase from August 7 to August 19 is nearly three times the 11% gain of the Nasdaq 100 during the same period. Nvidia’s stock rebounded in a V-shaped pattern, coinciding with a broader market rally as investors welcomed positive economic data, alleviating fears of an impending economic recession.

From its peak of $135 per share on July 10, Nvidia’s stock fell by 27% until August 7. In addition to recession concerns, investors were also worried that spending on artificial intelligence (AI) might slow down. However, earlier this week, Nvidia’s stock price surged to $130 per share, just a few percentage points away from its record high.

Whether this historic price surge can continue will depend on Nvidia’s upcoming earnings report. Wall Street analysts remain optimistic about Nvidia’s revenue outlook. Matt Bryson, an analyst at Wedbush, believes that the commitment to AI spending through the launch of the Blackwell product line will drive Nvidia’s revenue growth in the coming year. He maintains a “buy” rating on Nvidia’s stock and predicts another quarter of growth.

Vijay Rakesh, Managing Director at Mizuho, took advantage of Nvidia’s sharp stock decline to raise his price target, a decision that has proven to be correct. He remarked, “Demand remains unchanged. Nvidia continues to lead.”

Nvidia’s stock explosion has also resulted in a significant win for CEO Jensen Huang. His net worth surged from $27 billion on August 7 to $114 billion, catapulting him to the 11th spot on the list of the world’s richest people. Currently, Nvidia boasts a market capitalization of $3.15 trillion, with a $765 billion increase in just eight trading days—greater than the market value of Tesla, JPMorgan, or Walmart.