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It is clear that the company's stock price has been driven by the strong demand for its products, the global AI boom.

Nvidia rushed on the US stock exchange yesterday ahead of tonight's quarterly report. The AI boom's big winner is also the world's highest valued company, and the report is described as the most important thing happening on the stock exchanges right now.

» Published: 20 November 2024

It is clear that the company's stock price has been driven by the strong demand for its products, the global AI boom.
Photo: Mads Claus Rasmussen/Ritzau Scanpix/TT

Just before the report, the stock rose by nearly five percent on Tuesday evening's US stock exchange. The fall risk is therefore becoming increasingly greater. Expectations are at 100 percent increased turnover next year and 45 percent the year after.

The constantly increasing demand for Nvidia's products (manufacturer of graphics cards and processors for artificial intelligence (AI) and machine learning) around the world has led to a 850 percent increase in the company's stock price since the AI boom started two years ago. Just since the turn of the year, the stock has risen by more than 200 percent.

A long series of strong profit increases and large boosts in turnover, combined with ambitious plans for future products, are behind Nvidia's stock market successes. But if they miss those targets, it can also quickly go downhill. There are risk factors.

It is, among other things, important that they technically succeed with their next-generation architecture called Blackwell, which has been plagued by problems and delays.

Tonight's report is also being followed with great excitement among Swedish small investors who have chosen to invest in the company. According to Nordnet, the number of shareholders has increased by 230 percent this year, and a total of 67,000 customers now own shares via Nordnet, making it the most owned American stock on Nordnet's platform.

At competitor Avanza, it is simultaneously over 74,000 customers who now own Nvidia shares.

American Nvidia has, ahead of Wednesday's report for the third quarter this year, pushed the American tech giant Apple from the throne as the world's highest-valued listed company. Nvidia's market value has since then fluctuated around 3,600 billion dollars.

In kronor, Nvidia is worth around 40,000 billion after the price increase. This can be compared to the Swedish stock exchange's heavier stocks, such as AB Volvo, with a market value of 580 billion, or Atlas Copco, at 870 billion.

In fact, Nvidia, with its enormous price increase, now accounts for 7 percent of the US stock exchange's S&P 500 index, or roughly three times as much as the entire Stockholm stock exchange – which, including First North companies, has a value of approximately 11,640 billion kronor according to the exchange operator Nasdaq.

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By TTThis article has been altered and translated by Sweden Herald

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