Nvidia’s stock price has more than doubled this year, increasing the company’s market value by over $1.3 trillion. The company reported better-than-expected quarterly results, with soaring demand for its semiconductors used in AI applications. Revenue in the latest quarter more than tripled from the same period a year earlier, indicating the ongoing excitement around artificial intelligence. Nvidia’s market value saw a significant increase of $221 billion in a single day, contributing to its total increase of $1.374 trillion so far this year, surpassing companies like Facebook and Meta Platforms.
Nvidia’s total market value reached $2.593 trillion as of the close of trading Thursday, making it the third most valuable public company behind Microsoft and Apple. The company’s stock price closed at $1,037.99, making it one of the nine companies in the S&P 500 with a share price over $1,000. Nvidia announced a 10-for-1 stock split, making its shares more accessible to employees and investors. The company reported revenue of $26 billion in its most recent fiscal quarter, more than triple the amount from the same period a year ago, with Wall Street analysts expecting a significant increase in revenue for fiscal 2025.
Nvidia’s estimated net margin is 53.4%, indicating that a significant portion of its revenue translates into profits. The company’s profitability compares favorably to other tech giants like Apple and Microsoft, with 53 cents of every $1 of revenue going to its bottom line. Analysts project Nvidia to bring in revenue of $117 billion in fiscal 2025, close to double its revenue in 2024 and more than four times its receipts the year before. The company has positioned itself as a prominent player in AI, driving its impressive financial performance and market value growth.
The company’s strong quarterly results and market value increase reflect the continued demand for its semiconductors powering AI applications. Nvidia’s success in the AI space has propelled its market value to record levels, surpassing major tech companies in the process. The 10-for-1 stock split announced by Nvidia aims to make its shares more accessible to a broader range of investors, maintaining its strong financial performance and market position. With a focus on AI innovation, Nvidia is positioned for continued growth and success in the evolving tech industry landscape.
