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: November 20 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.

Tags

TTT
By TTTranslated and adapted by Sweden Herald

More news

Wall Street Opens Strong as Tech Stocks Lead Gains
1 MIN READ

Wall Street Opens Strong as Tech Stocks Lead Gains

US Finance Minister: Reduce Tariffs with China for Fair Trade
1 MIN READ

US Finance Minister: Reduce Tariffs with China for Fair Trade

Eli Lilly Stock Drops Despite Strong Quarterly Growth
1 MIN READ

Eli Lilly Stock Drops Despite Strong Quarterly Growth

McDonald's Reports Largest Sales Decline in Five Years
1 MIN READ

McDonald's Reports Largest Sales Decline in Five Years

Tax Return Deadline Approaches: How to Avoid Late Fees
3 MIN READ

Tax Return Deadline Approaches: How to Avoid Late Fees

Tesla Board Denies Search for Elon Musk's Replacement
2 MIN READ

Tesla Board Denies Search for Elon Musk's Replacement

Tokyo Stock Exchange Sees Gains as Interest Rates Hold Steady
1 MIN READ

Tokyo Stock Exchange Sees Gains as Interest Rates Hold Steady

Japan Keeps Interest Rate Steady at 0.5 Percent
1 MIN READ

Japan Keeps Interest Rate Steady at 0.5 Percent

Meta Surpasses Q1 Expectations, Shares Rise in After-Hours Trading
1 MIN READ

Meta Surpasses Q1 Expectations, Shares Rise in After-Hours Trading

Wall Street Rebounds After US GDP Decline in First Quarter
2 MIN READ

Wall Street Rebounds After US GDP Decline in First Quarter

Swedbank Swish App Issues Resolved for Customers
1 MIN READ

Swedbank Swish App Issues Resolved for Customers

Trump Blames Biden for US GDP Decline in First Quarter
1 MIN READ

Trump Blames Biden for US GDP Decline in First Quarter

US GDP Falls 0.3 Percent in First Quarter Amid Recession Fears
2 MIN READ

US GDP Falls 0.3 Percent in First Quarter Amid Recession Fears

Hotel Room Prices Drop as Demand Decreases in April
1 MIN READ

Hotel Room Prices Drop as Demand Decreases in April

Euro Area GDP Growth Surpasses Expectations in First Quarter
1 MIN READ

Euro Area GDP Growth Surpasses Expectations in First Quarter

Heart Aerospace Moves Headquarters from Gothenburg to Los Angeles
1 MIN READ

Heart Aerospace Moves Headquarters from Gothenburg to Los Angeles

Thailand Central Bank Cuts Interest Rate to 1.75 Percent
1 MIN READ

Thailand Central Bank Cuts Interest Rate to 1.75 Percent

Stockholm Stock Exchange Rises Despite Evolution's 19% Stock Plunge
1 MIN READ

Stockholm Stock Exchange Rises Despite Evolution's 19% Stock Plunge

Debt Cases Drop in Sweden but Total Debt Rises Sharply
1 MIN READ

Debt Cases Drop in Sweden but Total Debt Rises Sharply

Stellantis Withdraws Financial Guidance Amid Trump's Trade Tariffs Impact
1 MIN READ

Stellantis Withdraws Financial Guidance Amid Trump's Trade Tariffs Impact