In just one day, the stock market value of Nvidia increased by $273 billion. Let’s take a closer look at the numbers behind this rise to prominence in the field of AI.
On Thursday, Nvidia’s stock experienced a 16% increase, resulting in a remarkable $273 billion boost in the company’s market value in a single day, setting a new record.
The manufacturer of chips has experienced a significant increase in demand for its semiconductors, which are utilized for driving artificial intelligence, or AI, applications. The company’s earnings have more than tripled in the most recent quarter when compared to the same time period last year.
This is further evidence that the buzz surrounding artificial intelligence is unlikely to fade anytime soon. Nvidia, a major player in AI, has reported impressive figures. Take a look:
On Thursday, Nvidia Corp.’s market value increased by a significant amount, according to FactSet. This one-day jump surpasses the previous record set by Meta Platform on February 2 of this year, where they gained $205 billion. To put it into perspective, Nvidia’s one-day gain is higher than the total market values of well-known companies like Bank of America ($265 billion) and Coca-Cola ($263 billion). In fact, only 26 out of the 500 companies in the S&P 500 have market caps above $273 billion, including Nvidia.
As of the end of Thursday’s trading, Nvidia’s overall market worth has reached a new high. It has surpassed Amazon and Alphabet, securing the third spot as the most valuable publicly traded company, with only Microsoft ($3.051 trillion) and Apple ($2.845 trillion) ahead. Just a year ago, the company’s value was estimated at approximately $580 billion.
In the fiscal year that ended on January 28, Nvidia’s revenue was more than twice as much as it was in 2022 and approximately six times what it was five years ago. Financial analysts predict that Nvidia’s revenue will exceed $100 billion by fiscal year 2025.
Nvidia’s net margin refers to the portion of their revenue that is converted into profit. In other words, nearly half of every dollar earned by Nvidia last year was contributed to their bottom line. In comparison, Apple has a net margin of 25.3% and Microsoft’s is 34.1%. It should be noted that both Apple and Microsoft have substantially higher revenue than Nvidia.
Source: wral.com