Nvidia Stock Surges 10% as Market Value Tops $5.5 Trillion

Nvidia shares surged nearly 10% Thursday, climbing to almost $230 as investors responded to the chipmaker’s stronger-than-expected second-quarter results and its outlook for continued AI-driven growth. The rally restored Nvidia’s market value to more than $5.5 trillion.

Nvidia’s stock was up more than 9.6% at about $229.82 shortly after 1 p.m. EDT, extending gains after shares advanced roughly 7% during the first hour of trading. The move further strengthened the position of Nvidia as the world’s most valuable company.

The rally followed Nvidia’s second-quarter earnings report released Wednesday. The company posted $96.2 billion in revenue, a 106% increase from the same period a year earlier and above analysts’ $92.2 billion forecast. Adjusted earnings per share came in at $2.22, exceeding the $2.09 expected by Wall Street.

Nvidia also projected $108 billion in revenue for its third quarter, with a possible variation of 2%. Company management additionally expects revenue to grow by about 70% during fiscal 2028, reflecting continued demand associated with artificial intelligence.

The company’s data center operation remained the dominant contributor to its results, generating $89 billion in revenue during the quarter. Nvidia’s forecast for $108 billion in current-quarter revenue also surpassed analysts’ expectations.

Nvidia’s stock surge had a significant impact on CEO Jensen Huang’s wealth. His net worth increased by more than $15 billion as the shares climbed, moving him ahead of Oracle co-founder Larry Ellison and Meta co-founder Mark Zuckerberg to sixth place on the Real-Time Billionaires List.

The company is also reportedly pursuing a major expansion in AI beyond its semiconductor business. The Information reported late Wednesday that Nvidia had agreed to acquire Hugging Face, an AI platform that hosts open-source models, for $12.9 billion. If completed, the transaction would connect Nvidia’s leading position in AI chips with a major platform for open-source artificial intelligence.

Nvidia invested $235 million in Hugging Face in 2023, when the startup was valued at $4.5 billion. Hugging Face has also recently attracted attention after OpenAI disclosed that one of its AI models had hacked the platform.