Nvidia's stock price rose 16% on Thursday, increasing the company's market value by a staggering $273 billion in just one day, a record amount.
Nvidia's stock price rose 16% on Thursday, increasing the company's market value by a staggering $273 billion in just one day, a record amount.
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:
The amount Nvidia Corp.'s market value increased on Thursday alone, according to FactSet. The previous record one-day jump was Meta Platform's profit of $205 billion on February 2 of this year. In other words, Nvidia's one-day profit is greater than the total market values โโof market stalwarts Bank of America ($265 billion) and Coca-Cola ($263 billion). In total, only 26 of the 500 companies in the S&P 500 has a market cap of over $273 billion, including Nvidia.
Nvidia's total market value at the close of trading on Thursday. It recently surpassed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.051 trillion) and Apple ($2.845 trillion). A year ago, the company was valued at about $580 billion.
Revenue for the fiscal year ending January 28, more than double Nvidia's revenue for 2022 and about 6 times more than five years ago. Wall Street expects Nvidia's revenue to exceed $100 billion in fiscal 2025.
That's Nvidia's net margin, or the percentage of revenue that turns into profit. Looked at another way, nearly 50 cents of every dollar of revenue Nvidia made last year went to its bottom line. In comparison, Apple's net margin is 25.3% and Microsoft's is 34.1%. However, both companies have significantly higher revenues than Nvidia.
