It’s a testament to Nvidia Corp.’s blockbuster run over the past year that Wall Street is, in a way, looking past eye-popping metrics like a quintupling of data-center revenue in the latest quarter. Investors have become so accustomed to that sort of performance from Nvidia
NVDA,
+16.40%
that they’ve increasingly been wondering how long the company can keep growing. But as Nvidia’s stock surged 16.4% Thursday, it appeared that Wall Street was satisfied with the company’s long-term message.
Nvidia’s Thursday stock rally added $277 billion to the company’s market value, making for the biggest one-day haul ever by any U.S. company, according to Dow Jones Market Data. Facebook parent Meta Platforms Inc.
META,
+3.87%
added $204.5 billion to its valuation on Feb. 2. Nvidia’s stock secured a new all-time high of $785.38. It also saw its best single-day percentage increase since its 24.4% rally from May 23, 2023. In light of talk on Wall Street about growth sustainability, one comment from management stood out to Bernstein analyst Stacy Rasgon. “[O]ver the longer term the company not only sees accelerated compute ramping through the current $1 trillion of installed data-center infrastructure but also sees that installed base doubling to $2 trillion over the next five years,” Rasgon wrote in a note to clients. That expansion of the installed base “feels almost scary but if true would suggest absolutely mammoth growth potential still to come,” he continued. See also: Nvidia earnings send stock rocketing as company cheers AI ‘tipping point’ In Rasgon’s view, Nvidia’s stock story “still feels like it has legs,” while the company’s opportunity in the data-center business “is enormous, and still early, with material upside still possible.” He rates the stock at outperform and lifted his price target to $1,000 from $700. Adjectives were flying around as analysts digested Nvidia’s report, with TD Cowen’s Matthew Ramsay c …
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NVDA,
+16.40%
that they’ve increasingly been wondering how long the company can keep growing. But as Nvidia’s stock surged 16.4% Thursday, it appeared that Wall Street was satisfied with the company’s long-term message.
Nvidia’s Thursday stock rally added $277 billion to the company’s market value, making for the biggest one-day haul ever by any U.S. company, according to Dow Jones Market Data. Facebook parent Meta Platforms Inc.
META,
+3.87%
added $204.5 billion to its valuation on Feb. 2. Nvidia’s stock secured a new all-time high of $785.38. It also saw its best single-day percentage increase since its 24.4% rally from May 23, 2023. In light of talk on Wall Street about growth sustainability, one comment from management stood out to Bernstein analyst Stacy Rasgon. “[O]ver the longer term the company not only sees accelerated compute ramping through the current $1 trillion of installed data-center infrastructure but also sees that installed base doubling to $2 trillion over the next five years,” Rasgon wrote in a note to clients. That expansion of the installed base “feels almost scary but if true would suggest absolutely mammoth growth potential still to come,” he continued. See also: Nvidia earnings send stock rocketing as company cheers AI ‘tipping point’ In Rasgon’s view, Nvidia’s stock story “still feels like it has legs,” while the company’s opportunity in the data-center business “is enormous, and still early, with material upside still possible.” He rates the stock at outperform and lifted his price target to $1,000 from $700. Adjectives were flying around as analysts digested Nvidia’s report, with TD Cowen’s Matthew Ramsay c …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]