Nvidia's market cap climbs amid tech turbulence in August
Technology
In stark contrast, other technology behemoths saw a sombre August
(Reuters) - Nvidia Corp’s (NVDA.O) market capitalization climbed higher in August thanks to its strong profit forecasts, which defied the broader downtrend in mega-cap technology stocks during the past month as an uptick in U.S. bond yields rattled the sector.
Nvidia's shares surged last month, boosted by its quarterly revenue forecast, which exceeded analyst expectations as the artificial intelligence boom fuels demand for its chips. Also, an announcement of a $25 billion share buyback lifted its shares.
In stark contrast, other technology behemoths saw a sombre August. The market capitalization of Apple (AAPL.O) and Microsoft Corp's (MSFT.O) shares declined 4.4% and 2.4%, respectively, while Meta Platforms Inc's shares fell 7.1%.
Last month, Apple said its sales slump would continue into the fiscal fourth quarter, hit by slowing demand for its flagship product, the iPhone.
Meanwhile, Berkshire Hathaway's (BRKa.N) market cap rose over 2% last month, as its shares touched a record high after the company's quarterly operating profit topped $10 billion for the first time.
Berkshire said rising interest rates boosted profit from fixed-income investments in its second-quarter earnings, while few accident claims bolstered Geico car insurance, its subsidiary.
In China, Tencent Holdings'(0700.HK) market cap declined about 9% last month, as its core gaming business experienced weaker-than-expected growth in the quarter through June.
Johnson & Johnson (JNJ.N) was the worst performer among the top 20 global companies by market cap, shedding about 10% in the last month, as a U.S. judge shot down its second attempt to resolve tens of thousands of talc-related lawsuits.
