Nvidia's capitalization returned to $5 trillion for the first time in six months amid chipmaker rally

Nvidia shares rose 4.3% on Friday, April 24, amid a broad rally in the semiconductor sector, driven by strong results of Intel. For securities Nvidia this is the first record closing of trading since October, notes Bloomberg. At the same time, the company's capitalization once again crossed the $5 trillion mark - it had been holding lower all the time since November 3.

The company's shares have broken out of the range in which they have been trading for most of the year, Bloomberg writes. Four weeks ago, the value of Nvidia was 20% less relative to the October peak. Since the beginning of the year, quotes of the company jumped by 12% and contributed most to the growth of the S&P 500, which during this period added 4.7%. According to Bloomberg, Nvidia accounts for about 20% of the entire rise in the index.

After lagging the market for most of the year amid concerns about AI spending, shares of tech giants have turned to gains in the past four weeks: amid geopolitical tensions, investors are looking for stability and companies that are steadily increasing earnings, the agency explained. The Philadelphia Semiconductor Pro Index rose for a record 18 consecutive sessions, adding 47%, Bloomberg calculated.

"The amount of money that is flowing into AI is tremendous, and so far there are no signs of a slowdown. In that context, it's not surprising that Nvidia remains one of the top stars as we see a return of interest in the technology sector," Paul Nolte, market strategist and senior asset manager at Murphy & Sylvest Wealth Management, told Bloomberg. - "I'm waiting for [the company's] report to get an overall picture on the spending outlook, but otherwise there's plenty of reason to be optimistic about Nvidia's future.

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