Nvidia becomes first-ever company to cross $5.5 trillion market value as analysts issued a ‘stock warning’ for May 21
Nvidia crossed a market value of $5.5 trillion on Wednesday, May 13 after its shares rose around 3% in afternoon trading, further strengthening its position as the world’s most valuable company. The rally came as Nvidia CEO Jensen Huang was traveling with US President Donald Trump to China ahead of meetings with Chinese President Xi Jinping. Nvidia’s latest gains pushed the company further ahead of rivals including Google and Apple in global market value rankings.Nvidia shares have risen nearly 20% over the past month, touching the $220 level this week. Earlier this year, on March 30, the stock had fallen to a low of $165.17 per share.
Nvidia earnings report due on May 20
Nvidia is expected to announce its first-quarter earnings for fiscal year 2027 next week. Analysts expect the company to report around $78 billion in revenue. The company previously reported $68 billion in fourth-quarter sales, up 73% year-over-year. Most of the revenue came from its fast-growing data center business, which generated more than $62 billion.Nvidia has also expanded partnerships with major technology companies this year, including a deal with Meta that allows the company to use Nvidia AI chips and hardware for its growing artificial intelligence operations.Ahead of its earnings report on May 20, analysts warned Nvidia against stock decline after the results. Citing America’s biggest defense technology company Palantir as an example, private financial and investing advice company, The Motley Fool highlighted that strong results alone may not be enough to satisfy investors with very high expectations. The firm highlighted Palantir’s strong growth with the company recently reporting an 85% jump in revenue to $1.63 billion. Despite this, Palantir shares fell more than 8% in the two days after the earnings report. Analysts predict a similar stock decline for Nvidia on May 21.
Jensen Huang’s wealth jumps as Nvidia rallies
According to Forbes estimates, Jensen Huang’s personal net worth increased by about $5.4 billion on Wednesday, reaching around $196.1 billion. The increase helped him beat Dell CEO Michael Dell and placed him behind Meta CEO Mark Zuckerberg and Oracle co-founder Larry Ellison.