Topline
Artificial intelligence chip architect Nvidia again became the world’s most valuable company after impressing investors in its latest quarterly earnings report, helping lift U.S. stocks also jolted by a court ruling challenging President Donald Trump’s most wide-sweeping tariffs.
Nvidia CEO Jensen Huang enjoyed a multibillion-dollar boost to his net worth Thursday.
Nvidia stock jumped 5% to more than $141 per share Thursday, hitting its highest share price since Feb. 18 as Wall Street reacted favorably to its spring quarter results shared Wednesday afternoon.
Nvidia’s market capitalization surged by about $160 billion to nearly $3.5 trillion, vaulting the AI leader past Microsoft as the biggest company in the world.
Despite the “huge hurdle” of the Trump administration banning Nvidia from selling its H20 chips to China, the company delivered a “great result,” explained Truist analysts led by William Stein in a note to clients.
The post-earnings rally for Nvidia shares, combined with the Court of International Trade’s late Wednesday ruling that Trump’s most aggressive tariffs overstepped his legal authority, helped lift the broader stock market, which would benefit from lower tariffs as import fees weigh directly on bottom lines.
The S&P 500 gained about 0.5% and the tech-heavy Nasdaq jumped almost 1%, hitting its highest level in more than three months.
To put the $160 billion in value Nvidia added Thursday, the entire company was worth just $144 billion at the end of 2019.
Nvidia said Wednesday it took a $4.5 billion charge last quarter and expects a further $8 billion loss this quarter due to the China restrictions. In the earnings call, Nvidia CEO Jensen Huang made clear he disagrees with the export controls to China. “China's AI moves on with or without U.S. chips,” explained Huang, adding “shielding Chinese chipmakers from US competition only strengthens them abroad and weakens America's position.” But Huang, who accompanied Trump this month on a trip to the United Arab Emirates, also expressed faith in Trump, who Huang said “has a vision and I trust him.”
“The China headwind is unpleasant and frustrating,” wrote Bernstein analysts led by Stacy Rasgon. “Amid a messy quarter, Nvidia is comporting [itself] extremely well.
$6.2 billion. That’s how much richer Huang got during Thursday’s rally, making him the 10th-richest person in the world, according to Forbes’ latest calculations.