NVIDIA Hits Closing Price Above $1,000 for the First Time... Wall Street Raises Target Prices Continuously

Artificial intelligence (AI) leader Nvidia surpassed $1,000 for the first time ever based on closing price. Better-than-expected earnings and news of a 10-for-1 stock split acted as positive catalysts, driving the stock price up by over 9% in a single day. On Wall Street, major investment firms such as Bank of America (BoA) and Jefferies have continued to raise their price targets for Nvidia.

On the 23rd (local time) in the New York stock market, Nvidia’s stock closed at $1,037.99, up 9.32% from the previous session. Following the after-hours trading session the day before, when it first surpassed $1,000, Nvidia officially joined the 'Thousand-dollar Nvidia' club based on closing price.

The day’s price increase was the second highest ever. At one point during the session, the stock rose more than 10%. Nvidia’s market capitalization also increased by over $220 billion in a single day, exceeding $2.55 trillion. At the current pace, it is expected that Nvidia will not only reach a $3 trillion market cap but also surpass Apple, the second largest company by market cap. Nvidia’s stock price has surged more than 110% just this year.

This sharp rise followed the earnings announcement the previous day. Nvidia’s Q1 (February to April) revenue, released immediately after the New York market closed, rose 262% year-over-year to $26 billion, and adjusted earnings per share (EPS) increased 461% to $6.12. These figures exceeded market expectations and indicate that demand for AI chips remains robust.

Jensen Huang, Nvidia’s CEO, expressed confidence in the next growth wave during the subsequent earnings conference call and interviews, highlighting the upcoming release of the next-generation chip 'Blackwell' scheduled for the end of this year. He dismissed concerns about a so-called air pocket in the market, stating, "Demand far exceeds supply."

Additionally, the announcement that Nvidia will execute a 10-for-1 stock split starting from May 10 also acted as a positive factor for the stock price. This is Nvidia’s first stock split in about three years since July 2021. The quarterly dividend was also raised from $0.04 per share to $0.10 per share.

On Wall Street, price target upgrades have continued since the earnings announcement. Bank of America (BoA) raised Nvidia’s price target from $1,100 to $1,320. Jefferies set a target of $1,350, JP Morgan Chase $1,150, and TD Cowen $1,200. Barclays, which had already raised its target before the earnings release, further increased it from $1,100 to $1,200 within just a few days. Bernstein raised its target to $1,300, focusing on Nvidia management’s comments regarding Blackwell.

Toshiya Hari, an analyst at Goldman Sachs who raised the price target to $1,200, said, "Customer demand is expanding steadily," adding, "The more important point is that demand will continue to outpace supply through 2025." Economic media CNBC reported that "Wall Street analysts are raising Nvidia’s price targets based on strong demand forecasts, saying 'It’s not over yet.'"