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Price Of Nvidia Stock Right Now: Global tech stocks moved sharply higher on Thursday. Investors returned to AI-focused companies with renewed enthusiasm. Nvidia’s latest results were a major driver of the rally.
The company reported revenue that soared 62% to $57.01 billion, beating estimates with ease. It also issued upbeat sales guidance for the fourth quarter.
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That positive outlook reassured investors betting on the future of AI. Nvidia’s shares climbed roughly 5% in premarket trading.
In Europe, Dutch chipmakers BESI and ASMI started the day strong. BESI gained more than 3%. ASMI was up over 2%.
ASML, which supplies essential tools to the semiconductor industry, added 2.1%. In Asia, Samsung Electronics climbed 3.5%. Hon Hai Precision Industry, widely known as Foxconn, rose 3.3%.
In the U.S., tech names drew heavy interest in premarket trading. AMD jumped 5%. Arm advanced nearly 4%. Micron Technology increased 2.7%. Marvell Technology added 3.3%. Broadcom traded 3.1% higher. Intel moved up by 2%.
A Phase of Truly Phenomenal Growth
Dan Hanbury, who manages global equities at Ninety One, responded with measured optimism to Nvidia’s premarket surge on Thursday.
Nvidia is the second-largest position in the firm’s global strategic equity fund. Hanbury said he was glad to see the stock jump early in the session.
But he added that early moves can just as quickly reverse later in the day. He shared his thoughts during an interview on CNBC’s “Squawk Box Europe.”
Hanbury said the latest results looked exceptionally strong to him. He explained that quarterly fluctuations can often distract from the long-term story.
He urged investors to view the numbers in context. Just three years ago, the company was generating about $15 billion in data-center revenue.
Now, projections for next year suggest that figure could reach roughly $280 billion. He called that level of expansion truly extraordinary.
Karen McCormick, the chief investment officer at London-based venture firm Beringea, also shared her thoughts on CNBC’s “Squawk Box Europe.”
She talked about how major tech players are rapidly increasing their AI investments and scaling efforts.
Her remarks came after reports that Nvidia and Microsoft plan to commit up to $15 billion to Anthropic, a growing competitor to OpenAI.
McCormick said it can be a bit intimidating to push back on Jensen Huang, especially after he delivers such strong earnings.
But she argued that the tight, almost closed-circle nature of Silicon Valley’s AI players is unlike anything we’ve seen before.
She likened the trend to old-style vendor financing. In the past, she explained, a supplier might step in to help a business stay afloat.
Now the same idea involves hundreds of billions of dollars flowing through the AI ecosystem. She said the level of interdependence has become so deep that it feels a little unsettling.
If the industry is in a bubble, she warned, and any part of it pops, the shock could spread quickly through all the connected companies.
Far From the Chaos of 1999
A wave of circular deals, growing debt, and lofty valuations put extra strain on the market ahead of Nvidia’s widely anticipated earnings.
This pressure persisted even as other Big Tech giants reported steady, healthy results. McCormick added that there is an important counterpoint to consider.
She said these companies are backed by extremely strong balance sheets. She also noted that their investors are deeply committed and unlikely to let them stumble.
Ben Barringer, Quilter Cheviot’s global head of technology research and investment strategist, said Nvidia’s valuation does not appear “especially excessive.”
He told CNBC’s “Europe Early Edition” on Thursday that core Big Tech valuations remain reasonably grounded.
He added that debt levels are mostly on the margins. While Meta and Amazon have taken on new debt, he said, both companies still sit in a net cash position.
He said the issue is mainly about companies managing their treasury operations and keeping their balance sheets healthy.
He admitted that funding some of their capital spending with debt isn’t ideal.
But he emphasized that it is still far better than what happened in 1999, when heavily leveraged telecom companies borrowed aggressively to finance huge projects.
On Thursday, Gil Luria, head of technology research at D.A. Davidson, told CNBC that Nvidia should not be treated as a sign of an industry bubble.
He said the bigger worry is the number of companies taking on significant debt to build data centers. Luria added that Nvidia’s latest earnings put to rest any concerns about the company itself.
Still, he warned that investors must continue watching the firms that are borrowing heavily to expand their data-center capacity.
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