Sora, NVIDIA, and Dan Bin, three words that sound independent, come together in the field of finance. The surprise attack of SORA has opened up people's imagination space for AI, and has led people to pay more attention to the computing power behind it. The biggest winner on the AI tuyere, Nvidia recorded the largest single-day market value increase in the history of U.S. stocks. On Thursday, local time, it rose 16%, and its market value increased by about $277 billion. On February 23, the concept of Nvidia rose sharply, as of press time, Zhongfutong, Zhuo Lang Technology, and Lin Weinano rose by more than 10%, and Advanced Data Communication, Bojie Shares, and Digital China were among the top gainers.
Nvidia, which is too expensive, is expensive again.
Goldman Sachs called it "the most important on the planet" at the moment, and Morgan Stanley believes that its earnings report could become a volatile event that will affect the trend of U.S. stocks. Just one day before the earnings report (20th), Nvidia's stock price this year's strong ** came to an abrupt end, and the intraday decline once reached 67%, closing down 435%。There is no obvious negative news for Nvidia, and there is only one core reason - it is too expensive, and some traders have decided to lock in profits before the earnings report.
What is surprising is that Nvidia's ** tells everyone with facts - it can be a little more expensive. Nvidia's stock price surged 16% on Thursday local time, adding about $277 billion in market capitalization to a total market value of nearly $2 trillion. Shares soared to all-time highs and posted the largest one-day market capitalization increase in market history, surpassing the record of $196.8 billion set by Meta Platforms three weeks ago.
After hours, Nvidia released its fiscal year 2024 and fourth quarter earnings reports. The company's revenue for fiscal year 2024 was 609US$2.2 billion, a year-on-year increase of 126%; Net profit was 297$6 billion, a year-on-year increase of 581%. The company achieved revenue of 221 in the fourth quarter of fiscal 20240.3 billion US dollars, an increase of 21 percent from the previous month98%, a year-on-year increase of 26528%；Net profit was 122$8.5 billion, up 32.2 percent from the previous quarter91%, a year-on-year increase of 76881%。The Company expects revenue of $24 billion for the first quarter of fiscal 2025, plus or minus 2%, up or or minus 7% sequentially and up about 234% year-over-year.
Wall Street has raised its price target again.
Why was Nvidia able to soar to nearly 2 trillion yuan overnight? A quote from Nvidia founder and CEO Jensen Huang on the earnings call may represent his own insight that accelerated computing and generative AI have reached a tipping point. Demand is soaring across companies, industries, and countries across the globe.
James Demmert, chief investment officer at Main Street Research, said some investors were afraid to buy Nvidia's ** because they thought the stock was too expensive. But this is a huge mistake. After each earnings report, the stock's price-to-earnings ratio drops because the denominator is much higher than one would expect.
At present, several institutions have announced an increase in the target price of Nvidia. Morgan Stanley raised its price target to $795 from $750, HSBC raised its price target on Nvidia from $835 to $880, Citi raised its price target from $575 to $820, and Bernstein raised its price target from $700 to $1,000.
Nvidia's soaring market capitalization has also boosted Huang's net worth. Huang's net worth rose $8.5 billion on Thursday to $68.1 billion, surpassing Charles Koch and Chung to No. 21 on the Bloomberg Billionaires Index, data showed. At the beginning of last year, he was only ranked 128th with a net worth of $13.5 billion.
But Bin bets on Bao to save the winding-up line products.
Wall Street legend is also good for A-shares, on February 23, the concept of Nvidia rose sharply, as of press time, Zhongfutong, Zhuo Lang Technology, and Lin Weina rose more than 10%, advanced data communication, Bojie shares, Digital China, etc.
At the same time, the news that the Internet celebrity private equity boss Dan Bin saved his liquidation line products because he bet on Nvidia also spread. But Bin posted on Weibo: "In the past two years, several products have been close to the liquidation line, and they don't want to lie flat, so they are trying to reverse the situation." Recently, based on confidence in NVIDIA's performance, I went all out to meet a home run opportunity. And Nvidia rose by more than 16%, apparently this home plate hit successfully! At 7:10 yesterday, Dan Bin replied to Weibo fans and said: "The main thing is to worry about a few products that are close to the liquidation line, and there will be no more products with a liquidation line in the future." ”
Moderator|Dai Manman.
* |Synthesized from Shanghai ** News, Wall Street News, Yicai and Dan Bin's own Weibo.