Nvidia shares gain $270 billion in one day

The major American indices closed with strong collective gains in Thursday’s session, supported by growth and technology stocks after Nvidia revealed its optimistic results and expectations, as the chip designer expected a nearly 3-fold increase in first-quarter revenues due to strong demand for its artificial intelligence chips and exceeding expectations for revenues. The fourth quarter.

Nvidia’s market value has reached about $1.94 trillion, on track to become the fastest company in the world to move from the trillion-dollar club to the trillion-dollar club.

Investors’ bets are heading towards June as the starting point for the first interest rate cut by the Federal Reserve after data showed that the number of Americans applying for new unemployment benefits unexpectedly decreased last week, indicating a strong labor market.

The Nasdaq Composite Index also rose by about 3%, closing above 16,000 points for the first time since November of 2021.

Nvidia stock jumped 16% in Thursday’s session to its highest levels ever, as the company added $273 billion in one day, achieving the highest daily gains in the history of Wall Street.

These significant gains came after it strongly exceeded the results test after announcing the growth of its revenues and profits above expectations, supported by the high demand for artificial intelligence products.

Earnings per share in the fiscal quarter ending January 28 amounted to $5.15, compared to expectations of $4.64 per share.

Quarterly revenues reached $22.1 billion, much higher than expectations of $20.6 billion.