Nvidia, a leading chipmaker, has experienced significant growth in its stock price and market value this year. The company’s stock price has more than doubled, increasing its market value by over $1.3 trillion. Nvidia reported better-than-expected quarterly results, attributing its success to the growing demand for its semiconductors used in AI applications. The company’s revenue tripled in the last quarter compared to the same period the previous year.
Nvidia’s market value increased by $221 billion in just one day, marking the second-largest one-day gain this year. The company’s net income soared over sevenfold compared to the previous year, reaching $14.88 billion in the first quarter. Nvidia’s total market value currently stands at $2.593 billion, making it the third most valuable public company behind Microsoft and Apple. Just two years ago, the company was valued at $418 billion.
The company also announced a 10-for-1 stock split, which will make its shares more accessible to employees and investors. Nvidia’s most recent fiscal quarter earnings totaled $26 billion, a significant increase from the previous year. Analysts anticipate the company to generate revenue of $117 billion in fiscal 2025, nearly doubling its revenue from the previous year.
Nvidia’s estimated net margin is 53.4%, indicating that a large percentage of its revenue converts to profit. In comparison, Apple and Microsoft have lower net margins, but significantly higher revenues. Despite the success of Nvidia, the excitement around artificial intelligence continues to grow, suggesting continued success for the company in the future.
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https://apnews.com/article/nvidia-artificial-intelligence-chips-stock-market-value-f1d89b8ec62f3a8556e332a46c39507c
