Nvidia, a company known for its AI chips for data centers, has a long history of innovation in personal computing and gaming. Founded in 1993, it went public in 1999 and has since seen remarkable financial success, reaching a market cap of $3 trillion.
The company’s CEO, Jensen Huang, along with his colleagues, started Nvidia to bring 3D graphics to gaming and multimedia industries. Their first major product was the GeForce 256 graphics chip in 1999, which paved the way for the company’s success in the gaming segment.
In recent years, Nvidia’s data center business has overtaken gaming as its main revenue source. This shift is driven by the increasing demand for AI development in centralized data centers operated by tech giants like Microsoft and Amazon. Nvidia’s GPUs are highly sought after for their parallel processing capabilities, making them ideal for AI workloads.
The company’s upcoming GB200 chip, based on its new Blackwell architecture, promises significant improvements in AI development speed and efficiency. This, coupled with Nvidia’s impressive revenue growth over the past 25 years, makes it a standout player in the tech industry.
Nvidia’s revenue has grown at a compound annual rate of 26.9% since its IPO in 1999. By fiscal year 2024, its revenue reached $60.9 billion, surpassing the growth rates of Apple and Microsoft in their first 25 years as public companies.
In the first quarter of fiscal year 2025, Nvidia reported a 262% year-over-year revenue increase, driven largely by its data center segment. Wall Street forecasts predict a revenue of $120.5 billion for the full fiscal year 2025, highlighting the company’s strong momentum.
While Nvidia’s future looks bright, investors should exercise caution due to its recent stock price surge. The company’s potential for continued growth may already be reflected in its current valuation, making it a risky investment at this point.
Overall, Nvidia’s success story, driven by its AI chips and data center business, showcases its position as a major player in the tech industry. With continued innovation and strong financial performance, the company is poised for further growth in the coming years.
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https://finance.yahoo.com/news/nvidias-revenue-growth-over-last-090100821.html