Nvidia shares surged 3.9% on Friday, pushing the tech giant back into the $3 trillion market cap club alongside Apple.
The company’s shares slumped 8.5% on Thursday after reporting its quarterly earnings, wiping out about $273 billion in value and leaving its market cap at $2.94 trillion. Despite this week’s 8% decline, Nvidia remains the second most valuable US tech company, behind Apple and ahead of Microsoft.
For the first half of 2025, Nvidia shares have lost over 12% of their value due to concerns over export controls, tariffs, AI efficiency, and slowing growth. However, Playground Global’s Sasha Ostojic believes that Nvidia’s fundamentals remain strong, despite recent price fluctuations.
Ostojic stated that any short-term dips are based on sentiment rather than fundamental analysis. The company is still worth five times more than its value two years ago during the generative AI boom.
Nvidia reported impressive results, with revenue jumping 78% to $39.33 billion and data center revenue soaring 93%. The company signaled a strong quarter for fiscal 2026 and resolved production issues for its next-generation chip, Blackwell.
CEO Jensen Huang emphasized that demand for Nvidia’s chips will remain strong due to the growing need for computing power in AI models. He also noted that large cloud service providers account for half of Nvidia’s data center revenue.
Other semiconductor stocks have faced pressure this week, with Advanced Micro Devices’ shares plummeting over 10%. Nvidia’s rival, AMD, has struggled since February after its data center revenues fell short of expectations.
Source: https://www.cnbc.com/2025/02/27/nvidia-bounced-from-the-3-trillion-market-cap-club-after-stock-drop.html