Santa Clara chipmaker Nvidia extends rally on metaverse-frenzy, valuation hits $800bn



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Santa Clara chipmaker Nvidia extends rally on metaverse-frenzy, valuation hits $800bn

On Thursday, shares’ prices of Santa Clara, California-headquartered chipmaking industry tycoon, Nvidia Corp., jumped just a notch sky of 9.0 per cent to $318.35 apiece, as investors appeared to be ramping up bets that the semiconductor manufacturer would highly likely to be handed out a substantial scale of boost from a cascade of companies which were pouring billions of dollars into their ‘metaverses.’ Nonetheless, Nvidia’s shares’ prices had been plunging at a breakneck pace since Facebook Inc’s announcement of a re-branding to Meta Platform, though the latest bulge in Nvidia shares came against the backdrop of an upbeat fourth-quarter earnings’ report released on Wednesday which underpinned hopes that its chips powering AI alongside metaverses could coffer up a large chunk in fresh capitals.

If truth is to be spoken, Nvidia shares’ prices had nearly doubled this year and hit an $800 billion mark on Thursday, outperforming rivals like of AMD and Intel which rose 65 per cent and 0.82 per cent year-to-date respectively.

Nvidia Corp valuation breaches $800 billion

Nonetheless, despite a strengthening of Nvidia’s stance as the United States’ seventh-most valuable company, several analysts had expressed deep discontents over a latest leg of increase in ‘long-positions’ on growth stocks such as Nvidia ahead of a likely rate-hike from the US Federal Reserve as early as by mid-2022.

Meanwhile, expressing an utter caution on budding growth factors in US capital markers, a Bernstein analyst Stacy Rasgon said, “Valuation will be the other potentially sticky factor, with the shares admittedly trading at eye-watering levels”.

Nevertheless, Nvidia Corp had reported a record revenue-surge of $2.50 billion over Q4, 2021, about 67 per cent up compared to the same time a year earlier, while the chipmaker’s full-year revenue came in at a record $7.76 billion.