Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

ASX 200 opens 0.7% higher: Nvidia's stellar performance fuels sentiment

EditorOliver Gray
Published 23/02/2024, 09:02 am
Updated 23/02/2024, 09:02 am
© Reuters. - The Australian Stock Exchange was trading 0.7% higher after the first 20 minutes of Friday's session, inspired by an upbeat mood on Wall Street, Europe, and Japan.

This surge in positivity comes in the wake of NVIDIA Corporation's (NASDAQ:NVDA) robust quarterly results and outlook, which surpassed expectations, leading the S&P 500 and Dow Jones Industrial Average to close at all-time highs.

Stay ahead of the curve with InvestingPro - Receive an additional 10% off the Pro+ subscription using the promo code "INVPRODEAL".

Nvidia's market capitalization soared by $277 billion, the largest single-session increase ever recorded by any company, easily outpacing Meta Platforms Inc (NASDAQ:META) $196.8 billion gain earlier in the month. Nvidia's market value has seen an impressive rise of more than $700 billion in 2024 alone.

The S&P 500, Dow, and NASDAQ Composite all posted significant gains, with ASX futures rising 32 points or 0.4% to 7603 close to 8 am AEDT. Several companies, including Nvidia, Meta Platforms, Broadcom Inc (NASDAQ:AVGO), Berkshire Hathaway (NYSE:BRKb), JPMorgan Chase & Co (NYSE:JPM), and Wells Fargo & Company (NYSE:WFC), reached 52-week highs.

Analysts were quick to laud Nvidia and raise their price targets. Bank of America Corp (NYSE:BAC) revised its target up from $US800 to $US925, while HSBC increased its target from $US835 to $US880. At least seven Wall Street analysts predict the stock to reach at least $US900, with KeyBanc setting its sights at $US1100.

Nvidia's results not only propelled Japanese equities to their highest level in more than three decades but also boosted European stocks, igniting a widespread global rally. The Nikkei 225 in Japan and Taiwan's benchmark both achieved record highs, while the Stoxx Europe 600 Index, Germany's DAX, and France's CAC 40 all made significant gains.

However, some analysts believe that Nvidia's stock may be nearing its peak or has simply risen too rapidly. JPMorgan reportedly set a target price of $US795, Deutsche Bank (ETR:DBKGn) at $US720, and DA Davidson at $US620. UBS reportedly reduced its target from $US850 to $US800.

On the ASX, companies including AMA Group Ltd (ASX:AMA), Arcadium Lithium (ASX:LTM), Aussie Broadband Ltd (ASX:ABB), Bapcor Ltd (ASX:BAP), Brambles Ltd (ASX:BXB), Jumbo Interactive Ltd (ASX:JIN), Latitude Group Holdings Ltd (ASX:LFS), Monash IVF Group Ltd (ASX:MVF), PEXA Group Ltd (ASX:PXA), Sandfire Resources NL (ASX:SFR), and Yancoal Australia Ltd (ASX:YAL) are scheduled to report results today. In other news, Newmont (ASX:NEM), the world's leading gold producer, is planning to sell six mines and two projects in a bid to generate $3.1 billion in cash.

The Australian dollar saw a slight increase, while Bitcoin rose by 0.6% while commodities such as gold, Brent crude, and iron ore experienced minor changes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.