Nvidia experienced a remarkable surge in its stock price, jumping by 16% on Thursday and adding an unprecedented $273 billion to its market value in a single day, setting a new record.
This surge comes amidst soaring demand for the chipmaker’s semiconductors, particularly those utilized in artificial intelligence (AI) applications. Nvidia’s revenue witnessed an impressive surge, more than tripling in the latest quarter compared to the same period a year earlier, reflecting the robust demand for its products in the AI sector.
Nvidia’s astounding market performance underscores the enduring excitement surrounding artificial intelligence (AI). As a key player in the AI space, Nvidia has delivered remarkable results, exemplified by its recent achievements:
$273 billion: Nvidia Corp.’s market value surged by this staggering amount on Thursday alone, as reported by FactSet. This leap surpasses the previous record set by Meta Platform’s $205 billion gain on Feb. 2 of the same year. To put it into perspective, Nvidia’s one-day increase exceeds the total market capitalizations of industry stalwarts like Bank of America ($265 billion) and Coca-Cola ($263 billion). Remarkably, among the S&P 500 companies, only 26 have market caps surpassing Nvidia’s one-day gain.
$1.915 Trillion: Nvidia’s total market value at the close of trading on Thursday. It has recently surpassed Amazon and Alphabet, securing its position as the third most valuable public company, trailing only Microsoft ($3.051 trillion) and Apple ($2.845 trillion). This marks a significant ascent from its valuation of approximately $580 billion just a year ago, highlighting the extraordinary growth trajectory the company has embarked upon.
$60.9 billion: Revenue for the fiscal year ended Jan. 28, more than doubling Nvidia’s revenue for 2022 and reflecting a six-fold increase from five years ago. This substantial revenue growth underscores the company’s strong position in the market.
48.8%: Nvidia’s net margin, representing the percentage of revenue converted into profit. In other words, nearly 50 cents of every $1 in revenue earned by Nvidia last year contributed to its bottom line. This net margin is notably high when compared to industry giants like Apple, which has a net margin of 25.3%, and Microsoft, with a net margin of 34.1%. Although Apple and Microsoft boast higher revenues, Nvidia’s impressive net margin highlights its efficiency in converting revenue into profits.
$100 billion: Wall Street anticipates that Nvidia’s revenue will surpass $100 billion in fiscal 2025, indicating continued confidence in the company’s growth prospects and market dominance.