Nvidia's stock price has more than doubled this year as of Thursday's close of trading, increasing the company's market value by more than $1.3 trillion. Those numbers will rise again on Thursday after the company reported better-than-expected quarterly results.
The chipmaker has seen growing demand for its semiconductors, which are used to power artificial intelligenceor AI applications. The company's revenue more than tripled in the latest quarter compared to the same period a year ago.
It's the latest sign that the excitement around artificial intelligence isn't likely to wane anytime soon. Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing surprising numbers. Here's a look:
That's the increase in Nvidia's market value on Thursday alone. Notably, it's only the second-biggest one-day gain in the company's market value this year after a record $273 billion jump on Feb. 22. Thursday's earnings came after Nvidia said net income increased more than sevenfold compared to a year earlier, jumping to $14.88 billion in its first quarter ended April 28 from $2.04 billion a year ago. former.
According to FactSet, Nvidia's market value has increased so far this year. In other words, Nvidia's profit so far this year is more than equal to the market value of Facebook and the main Instagram metaplatforms. In total, only six of the 500 companies in the S&The P 500 have market caps exceeding $1.152 trillion, including Nvidia.
Nvidia's total market value at the close of trading on Thursday. Earlier this year, it surpassed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.172 trillion) and Apple ($2.864 trillion). Two years ago, the company was valued at about $418 billion.
The price of Nvidia at the close of trading on Thursday, making it the ninth company in the S.&P500 with a share price above $1,000 (which sounds more notable than it is). However, that will soon change. On Wednesday, Nvidia announced it plans a 10-for-1 stock split, meaning there will be 10 times as many shares outstanding, but the price of each will be closer to $100 each. The company said the split, effective after markets close on June 7, will make its shares more accessible to employees and investors.
Nvidia's most recent fiscal quarter revenue. That's more than triple the $7.2 billion it reported in the same period a year ago. Wall Street expects Nvidia to generate revenue of $117 billion in fiscal 2025, which would be about double its revenue in 2024 and more than four times its revenue from the previous year.
Nvidia's estimated net margin, or the percentage of revenue that turns into profit. Looked at another way, about 53 cents of every dollar in revenue Nvidia made last year went to its bottom line. By comparison, Apple's net margin was 26.3% in its most recent quarter and Microsoft's was 36.4%. However, both companies have significantly higher revenues than Nvidia.
