Nvidia’s epic stock market rally has seen the graphics chip maker breaking many records in the recent past. With a market capitalisation of nearly $1.9 trillion, Nvidia is now bigger than the combined market capitalisation of all the 30 Sensex companies put together.
Interestingly,
Nvidia, which was less than half the size of Sensex in May 2023, has seen its market valuation swell by 560% since October 2022. In contrast, the market capitalisation of the top 30 companies in the country surged 30% during the same period.
In May last year, the company had joined the elite club of companies sporting a $1 trillion market value. Moreover, it is also set to hold the record for the biggest single addition in market cap with a nearly $250 billion jump in value.
Shares of Nvidia extended their rally and surged as much as 15% in premarket trading on Thursday after stellar numbers for the fourth quarter suggested exploding demand for
artificial intelligence computing hardware.
With a market cap of $242 billion, Reliance Industries makes up 14% of the Sensex’s market capitalisation. While
Tata Consultancy Services (TCS) contributes another 10% to the index’s market valuation, HDFC Bank accounted for 7.4% of the top 30 companies in the country.
Market Capitalization ($ trillion)
| Date | NVIDIA Corporation | Sensex |
|---|
| 22-02-2024 | 1.91 | 1.76 |
| 29-12-2023 | 1.22 | 1.70 |
| 30-12-2022 | 0.36 | 1.45 |
| 31-12-2021 | 0.74 | 1.57 |
| 31-12-2020 | 0.32 | 1.26 |
Indian mutual fund houses also held some stake in Nvidia through their foreign equity holdings. As of December 2023, four mutual fund houses - Axis, ICICI, Mirae, and
Motilal Oswal held some 1.7 lakh shares of Nvidia, which are currently valued at about $132 million.
Nvidia on Wednesday reported revenue of $22.1 billion for the fourth quarter ended January 28, 2024, which was up 22% from the previous quarter and up 265% from a year ago. The growth in revenue was propelled by strong demand for AI chips for servers, particularly the more powerful "Hopper" chips like the H100.
Analysts were quick to revise target prices for the stock.
Morgan Stanley, which has an overweight rating on the stock, increased its 12-month target price to $795 from $750. According to the brokerage, Nvidia’s quarterly numbers were very good as the company shone versus high expectations. “The strength of AI demand continues to be remarkable,” wrote Morgan Stanley post-Q4 results.
(Edited by : Anand Singha)
