Fri | Apr 12, 2024

Nvidia’s stock market value rose $273 billion in a day

How it rose to AI prominence, by the numbers

Published:Sunday | February 25, 2024 | 12:10 AM
A currency trader passes by the screens showing the Korea Composite Stock Price Index (left) and the foreign exchange rate between the US dollar and South Korean won (centre), at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul,
A currency trader passes by the screens showing the Korea Composite Stock Price Index (left) and the foreign exchange rate between the US dollar and South Korean won (centre), at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Friday. Asian markets mostly gained on Friday after Nvidia delivered another blowout quarter, setting off a rally in other technology companies that carried Wall Street to another record high.

Nvidia’s stock price jumped 16 per cent on Thursday, increasing the company’s market value by a staggering $273 billion in just one day, a record amount.

The chipmaker has been seeing soaring demand for its semiconductors, which are used to power artificial intelligence, or AI applications.

The company’s revenue more than tripled in the latest quarter compared with the same period a year earlier.

It’s the latest sign that the excitement surrounding artificial intelligence likely won’t subside anytime soon.

Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing some eye-popping numbers. Here’s a look:

$273 BILLION

In all, just 26 of the 500 companies in the S&P 500 have market caps above $273 billion, including Nvidia.

$1.915 TRILLION

Nvidia’s total market value as of the close of trading on Thursday. It recently passed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.051 trillion) and Apple ($2.845 trillion). The company was valued at around $580 billion a year ago.

$60.9 BILLION

Revenue for the fiscal year ended January 28, more than double Nvidia’s revenue for 2022 and about six times what it was five years ago. Wall Street expects Nvidia’s revenue to top $100 billion in fiscal year 2025.

48.8 PER CENT

That’s Nvidia’s net margin, or the percentage of revenue that gets turned in profit. Looked at another way, almost 50 cents of every $1 in revenue Nvidia took in last year went to its bottom line.

By comparison, Apple’s net margin is 25.3 per cent and Microsoft’s is 34.1 per cent. Both those companies have significantly higher revenue than Nvidia, however.

AP