NVIDIA's Rebound Rally: AI Growth Fuels Market Value Surge

Nvidia's Rebound Rally Adds Billions To Market Value, Analysts Eye AI Growth: Report - NVIDIA (NASDAQ:NVDA)

Nvidia shares now trade at 36 times forward earnings, down from 44 times. Nvidia Corp NVDA stock rebounded after weeks of volatility, making its valuation more attractive to the shareholders. The recent selloff brought Nvidia's valuation down to attractive levels. The stock now trades at about 36 times forward earnings, compared to 44 times in June. Over the past four sessions, Nvidia's shares have surged by 17%, adding nearly $424 billion to its market value. Also Read: Apple, Intel, And AMD Lead Charge In AI-Capable PC Market Surge: Report This surge has also contributed significantly to broader market gains, with Nvidia accounting for 22% of the S&P 500's recent uptick. Major technology companies like Microsoft Corp MSFT, Amazon.com Inc AMZN, Alphabet Inc GOOG, and Meta Platforms Inc META have all indicated their continued investment in AI infrastructure, signaling ongoing demand for Nvidia's defying geopolitical tensions. BofA Securities analyst Vivek Arya told CNBC that he expects Nvidia to retain its 80%+ share in the artificial intelligence hardware market, which has the potential to triple over the next few years. Price Action: NVDA shares were trading higher by 1.88% to $118.52 premarket at the last check on Wednesday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Nvidia, Super Micro Computer Surge In Pre-Market: What's Powering AI Stalwarts' Stocks? - NVIDIA (NASDAQ:NVDA), Super Micro Computer (NASDAQ:SMCI)

Even as index futures suggest a cautious start on Wednesday, Nvidia Corp NVDA and Super Micro Computer, Inc. SMCI - two companies with significant exposure to artificial intelligence technology, advanced strongly in premarket trading on Wednesday. The premarket strength may be attributable to comments from Taiwanese contract manufacturer Hon Hai Precision Industry Co. Ltd. HNHPF, which is a supplier to big tech companies such as Nvidia and Apple, Inc. AAPL. The Taipei, Taiwan-based company reported record June quarter revenue, with AI server revenue rising by 60% sequentially due to strong customer demand. Also, Hon Hai, popularly known as Foxconn, said the development schedule of Nvidia's GB200 rack is on track. "Foxconn will definitely be the first supplier to deliver and shipments should begin in the fourth quarter. If the schedule remains unchanged, the performance of the entire AI server segment may be better than originally estimated," said Foxconn Vice President and Spokesperson James Wu. See Also: Best Artificial Intelligence Stocks Incidentally, earlier this month, a report by The Information said the Blackwell B200 AI chips will take at least three months longer to produce than was planned due to a design flaw identified late in the production process. Foxconn's update should allay some concerns surrounding the delay. Delving into its outlook, Foxconn said strong demand for AI servers is expected to continue. "We maintain our view that AI servers will contribute to 40% of overall server revenue this year," Wu said, adding "AI servers should soon become Foxconn's next trillion-dollar revenue product." This is higher than the 30% contribution that AI servers currently make towards Foxconn's revenue, as the company's deputy spokesperson Jimmy Huang told Benzinga earlier in June at the Computex technology show in Taiwan. Nvidia is scheduled to report its second-quarter results after the market close on August 28 and strategists see the report as a key catalyst that can keep the market rally. Super Micro, which manufactures AI servers, reported in early August a fiscal fourth-quarter earnings miss, sending its stock sharply lower. The stock fell a little over 20% in earnings reaction before rebounding from the low. Price Action: At the time of writing, Nvidia stock rose 1.76% to $118.18 and Super Micro climbed 1.74% to $577.31 in premarket trading, according to Benzinga Pro data. Read Next: Apple, Nvidia Supplier Foxconn Clocks Record June Quarter Revenue As Net Margin Slips, Issues Upbeat Q3 Guidance Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs