News
Nvidia’s stock market value is nearly $2.6 trillion. How AI gained prominence, by the numbers
from Nvidia the stock price has more than doubled this year as of Thursday’s close of trading, increasing the company’s market value by more than $1.3 trillion. Those numbers rose again on Thursday after the company reported better-than-expected quarterly results.
The chipmaker has seen growing demand for its semiconductors, which are used to power artificial intelligence or AI applications. The company revenue more than tripled in the last quarter compared to the same period of the previous year.
It’s the latest sign that the excitement around artificial intelligence isn’t likely to die down anytime soon. Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing some surprising numbers. Here’s a look:
US$221 billion
That’s the increase in Nvidia’s market value on Thursday alone. Notably, it is only the second-largest daily gain in the company’s market value this year, following a record $273 billion jump on February 22. Thursday’s gains came after Nvidia said net profit rose more than sevenfold compared with a year earlier, jumping to $14.88 billion in the first quarter ended April 28, up from $2. 04 billion a year earlier.
US$1.374 trillion
Nvidia’s market value has risen so far this year, according to FactSet. In other words, Nvidia’s accumulated gain for the year is more than equal to the market value of Meta Platforms, the controllers of Facebook and Instagram. In total, only six of the 500 companies in the S&P 500 have market capitalizations above $1.152 billion, including Nvidia.
US$2.593 trillion
Nvidia’s total market value at the close of trading on Thursday. Earlier this year, it overtook Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.172 billion) and Apple ($2.864 billion). The company was valued at about $418 billion two years ago.
$1,037.99
Nvidia’s price at the close of trading on Thursday, making it just the ninth company in the S&P 500 with a share price above $1,000 (which seems more remarkable than it is). On Wednesday, Nvidia announced that it plans a 10-for-1 stock split, meaning there will be 10 times as many shares outstanding, but the price of each will be closer to $100 each. The company said the split, which will take effect after markets close on June 7, will make its shares more accessible to employees and investors.
US$26 billion
Revenue from Nvidia’s most recent fiscal quarter. This is more than triple the US$7.2 billion reported in the same period last year. Wall Street expects Nvidia to generate revenue of $117 billion in fiscal 2025, which would represent close to double its revenue in 2024 and more than four times its revenue in the previous year.
The story continues
53.4%
Nvidia’s estimated net margin, or the percentage of revenue that is turned into profit. Looked at another way, about 53 cents of every $1 in revenue Nvidia made last year went to its bottom line. By comparison, Apple’s net margin was 26.3% in the most recent quarter and Microsoft’s was 36.4%. Both companies have significantly higher revenues than Nvidia, however.