Nvidia might become the world’s first trillion-dollar chip stock. When it will reach that exalted level, though, is unclear.
- Shares of the chip maker surged 24% on Thursday, and were flat in the early Friday premarket, following an earnings-and-guidance release that has been described as “incredible,” “unfathomable,” and the “greatest beat of all time.”
- That’s not hyperbole. Nvidia reported a first-quarter profit of $1.09 a share, ahead of forecasts for 92 cents, while offering second-quarter revenue guidance of $11 billion, nearly $4 billion more than the $7.15 billion consensus.
- The recent gains in both the stock and the business give Nvidia a chance to do something no chip company has done—cross $1 trillion in market capitalization.
What’s Next: But how much higher can Nvidia really go? In the short term, perhaps not very far. Katie Stockton, founder of Fairlead Strategies, notes the stock’s move higher on Thursday will generate weekly and daily sell signals. “This suggests a short-term peak is likely in the long-term uptrend,” she writes.
—Ben Levisohn at Barrons