Nvidia's Stock Leaps Almost 13% To New Record Gains With A Record $330 Billion Surge

Author: Zaheer Anwari | August 01, 2024 10:43am

• Nvidia's market capitalization increased by $330 billion in a single day, surpassing its previous record gain of $277 billion.
• Nvidia's stock performance in July was volatile, with a 16% drop over the month.
• The stock’s recent fluctuations underscore the cyclical nature of the market, where rapid gains often lead to corrections or sideways movements as markets consolidate.

Nvidia Corp (NASDAQ:NVDA) stock valuation saw a significant jump, adding an impressive $330 billion to its market cap in just one day. This surge broke its previous record of a $277 billion gain.

The increase was driven by Microsoft's recent announcement of a significant rise in its AI-related spending for the fiscal year 2024, which is set to grow by 60% to $69 billion.

This news led to a nearly 13% rise in Nvidia's stock price, bringing its market capitalization to a remarkable $2.88 trillion. As a result, Nvidia has become the third-most valuable company in the world, behind only Apple and Microsoft.

Despite a historic gain, Nvidia’s performance in July showed a different story, reflecting the stock market's volatility during earnings season.

The company's stock price dropped by 16% over the month, with a partial recovery after a recent surge, ending the month down by 5%. This decline mirrored the overall bearish trend in the Nasdaq, which fell by 1.5% in July.

On Tuesday, Nvidia experienced a sharp 7% drop, nearing the critical $100 support level. This psychological threshold is important for investors, indicating a potential rebound or further declines.

However, thanks to positive market reactions to Microsoft's investment news, Nvidia's stock seems likely to stay above this key level if the bullish momentum continues.

The stock's recent path highlights the market's cyclical nature, where corrections or sideways movements often follow rapid gains as the market consolidates.

Just last month, Nvidia was consistently hitting new record highs, showcasing its strong market position and investor confidence. To break the record high of $140 set on June 20, Nvidia’s stock would need to rise another 20%.

After the closing bell on Wednesday, July 31, the stock closed at $117.02, trading up by 12.81%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Posted In: NVDA