Nvidia’s stock price has more than doubled this year, reaching a market value of over $1.3 trillion after reporting better-than-expected quarterly results. The chipmaker has experienced increased demand for its semiconductors used in AI applications, leading to a tripling of revenue compared to the previous year. Nvidia has established itself as a key player in the AI industry, with its market value increasing by $221 billion in one day and exceeding $1.3 trillion in total. The company’s net income jumped significantly, reaching $14.88 billion in the first quarter of this year, up from $2.04 billion the previous year.
Nvidia’s market value is now at $2.593 trillion, making it the third most valuable public company after Microsoft and Apple. The company’s share price closed at $1,037.99 on Thursday, but it will undergo a 10-for-1 stock split to make shares more accessible. Nvidia’s recent earnings for the fiscal quarter were $26 billion, showcasing the company’s growth trajectory. Analysts predict Nvidia’s revenue for fiscal 2025 could reach $117 billion, nearly double that of 2024.
Nvidia’s estimated net margin is 53.4%, indicating that a significant portion of revenue translates into profit for the company. This margin is higher than Apple’s and Microsoft’s, despite the latter two companies having larger revenues. Overall, Nvidia’s success in the AI sector has driven its impressive financial performance and market value growth.
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