NVIDIA's stock surged 14% over four trading days, adding $591 billion to its market capitalization. That increase alone exceeds Oracle's total market cap of roughly $557 billion.
Analysts cite strong cloud capex commitments
Analysts attribute the rally to strong capital expenditure commitments from major cloud service providers. A Bernstein analyst said investors are recognizing those commitments, indicating that demand for NVIDIA chips shows no signs of slowing down.
NVIDIA is scheduled to report its Q1 FY2027 earnings on May 20 after the market closes.
The same Bernstein analyst noted that money has flowed into various semiconductor sub-sectors, including memory, equipment, optical modules, power systems, and CPUs, which were not previously seen as AI-driven. However, Elazar Advisors analyst Chaim Siegel warned that NVIDIA faces growth slowdown risks this year and possibly into next year.
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