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Nvidia Inches Toward $5 Trillion Valuation

Record data-center sales coupled with an aggressive revenue guide have placed the company roughly 5–6% short of $5 trillion.

Overview

  • Nvidia's fiscal first-quarter revenue hit a record $81.6 billion with data-center revenue of $75.2 billion, and management guided for about $91 billion next quarter, underpinning the valuation run.
  • With about 24.2 billion shares outstanding, Nvidia would reach a $5 trillion market value at roughly $206 per share, about $10 higher than its recent close and a near-term move of roughly 5.5%.
  • Traders pushed the stock down on Tuesday amid a broader memory-led chip sell-off after Samsung's preliminary profit forecast, showing how sector swings can quickly widen the gap to $5 trillion.
  • Investors are watching large capital-return plans and recent insider share sales because big buybacks, higher dividends and insider dispositions can change liquidity and investor sentiment.
  • The company says accelerating AI infrastructure buildout is driving demand for its chips, but competition from rivals and cloud customers plus volatile chip markets pose short-term risks to sustaining the rally.