Nvidia crossed a market value of $5.5 trillion on Wednesday, May 13, as its shares rose approximately 3% in afternoon trading, further solidifying its position as the world's most valuable company. The rally coincided with Nvidia CEO Jensen Huang traveling with US President Donald Trump to China ahead of meetings with Chinese President Xi Jinping. Nvidia's latest gains pushed the company further ahead of rivals such as Google and Apple in global market value rankings.
Stock Performance and Recent Trends
Nvidia shares have surged nearly 20% over the past month, reaching the $220 level this week. Earlier this year, on March 30, the stock had fallen to a low of $165.17 per share. The recent uptick reflects growing investor confidence in the company's AI-driven growth prospects.
Earnings Report Due on May 20
Nvidia is expected to announce its first-quarter earnings for fiscal year 2027 next week. Analysts project the company will report around $78 billion in revenue. In the previous quarter, Nvidia reported $68 billion in sales, a 73% increase year-over-year. The majority of this revenue came from its rapidly expanding data center business, which generated over $62 billion.
Nvidia has also expanded partnerships with major technology companies this year, including a deal with Meta that allows the social media giant to use Nvidia's AI chips and hardware for its growing artificial intelligence operations. Ahead of the earnings report on May 20, analysts have warned of a potential stock decline after the results. Citing America's largest defense technology company, Palantir, as an example, The Motley Fool highlighted that strong results alone may not be enough to satisfy investors with very high expectations. Palantir recently reported an 85% jump in revenue to $1.63 billion, yet its shares fell more than 8% in the two days following the earnings release. Analysts predict a similar stock decline for Nvidia on May 21.
Jensen Huang's Wealth Surges
According to Forbes estimates, Jensen Huang's personal net worth increased by about $5.4 billion on Wednesday, reaching approximately $196.1 billion. This gain helped him surpass Dell CEO Michael Dell and placed him behind Meta CEO Mark Zuckerberg and Oracle co-founder Larry Ellison.
About the Author: The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. The TOI Tech Desk's news coverage spans a wide spectrum, including gadget launches, reviews, trends, in-depth analysis, exclusive reports, and breaking stories that impact technology and the digital universe. Whether it's how-tos or the latest developments in AI, cybersecurity, personal gadgets, or platforms like WhatsApp, Instagram, and Facebook, the TOI Tech Desk brings news with accuracy and authenticity.
