Nvidia’s Soaring Stock Price
Nvidia, a prominent chipmaker, experienced a remarkable 16% surge in its stock price, resulting in an unprecedented increase in the company’s market value by $273 billion in just one day.
Driving Force: High Demand for Semiconductors
The surge is attributed to the surging demand for Nvidia’s semiconductors, particularly in the realm of artificial intelligence (AI) applications. The company’s revenue in the latest quarter tripled compared to the same period last year, emphasizing the robust demand for its products.
Record-Breaking Statistics
$273 Billion in One Day
Nvidia’s market value skyrocketed by $273 billion in a single day, setting a new record. This surpasses the previous one-day record set by Meta Platform at $205 billion on February 2 of the same year.
$1.915 Trillion Total Market Value
As of the latest trading session’s close, Nvidia’s total market value stands at an impressive $1.915 trillion. This positions the company as the third most valuable public entity, trailing only behind Microsoft and Apple.
Financial Performance Highlights
$60.9 Billion in Revenue
Nvidia reported a staggering $60.9 billion in revenue for the fiscal year ended January 28. This represents more than double the revenue for the previous year (2022) and a remarkable sixfold increase compared to five years ago. Analysts anticipate the company’s revenue to exceed $100 billion in fiscal 2025.
Exceptional Net Margin – 48.8%
Nvidia boasts a remarkable net margin of 48.8%, signifying the percentage of revenue converted into profit. This implies that almost 50 cents of every $1 in revenue earned by Nvidia in the last year contributed to its bottom line. In comparison, Apple and Microsoft, though having higher revenue figures, exhibit lower net margins at 25.3% and 34.1%, respectively.
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