Nvidia nears a $2 trillion valuation after adding a record $277 billion in stock market value in a single day!
NVIDIA Corporation (NVDA) is a prominent American semiconductor firm headquartered in Santa Clara, California, renowned for its cutting-edge graphics processing units (GPUs). With a dominant market share of around 80% in GPU semiconductor chips as of 2023, NVIDIA specializes in high-performance chips tailored for graphics-intensive tasks like gaming, editing, and 3D rendering, as well as for artificial intelligence (AI) and machine learning (ML) applications. With over 25 years of innovation, NVIDIA stands as a pioneer in GPU technology.
A top chip producer known for GPUs, Nvidia, emerged as a major supplier of AI hardware and software. Its pivotal role came in 2022, when OpenAI’s ChatGPT chatbot, powered by 10,000 NVIDIA GPUs launched, marking a breakthrough in the industry.
Nvidia added $277 billion in stock market value on Thursday, February 22, Wall Street’s largest one-day gain in history, after the chipmaker’s quarterly report beat expectations and reignited a rally fueled by optimism about prospects of artificial intelligence.
Stock surged 16.4% to $785.38, hitting a record high and pushing its market cap to $1.96 trillion post-January-quarter report. The report showcased strong demand for their AI computing chips, exceeding analysts’ expectations. This fueled a global tech stock rally, driving the S&P 500, Europe’s STOXX 600, and Japan’s Nikkei to record highs. Nvidia’s shares saw $65 billion in trading volume on Thursday, nearly a fifth of the S&P 500’s total. Nvidia’s historic single-day stock market surge surpassed Meta Platforms record gain, surpassing Coca-Cola’s value at $265 billion. The $277 billion increase also exceeded the combined market capitalization of all listed IT companies in India, totaling about $260 billion.
Nvidia’s surge propelled it to become the third-most valuable company in the US stock market, surpassing Amazon and Alphabet. Microsoft and Apple remain the top two, with market values of $3.06 trillion and $2.85 trillion, respectively.
Q4 revenue reached $22.1B, a 22% increase from the previous quarter and a 265% increase from the previous year. Full-year revenue for fiscal 2024 totaled $60.9B, marking a significant 126% increase.
CEO Jensen Huang highlighted the increasing demand for accelerated computing and generative AI, particularly in sectors such as data centers, gaming, professional visualization and automotive. The company also announced various collaborations and innovations across its different business segments.
Data Center revenue hit a record $18.4B in Q4, up 27% from the previous quarter and a remarkable 409% increase from the previous year quarter, Full-year revenue rose 217% to a record $47.5B. With collaborations with Google and Amazon Web Services, as well as partnerships with companies like Amgen and Singtel.
In the gaming segment, revenue stayed at $2.9 billion compared to the previous quarter but surged by 56% YOY. Full-year revenue hit $10.4 billion, a 15% increase. NVIDIA continues to innovate with the launch of GeForce RTX 40 SUPER Series GPUs and advancements in generative AI for over 100 million RTX AI PCs.
In Q4, Professional visualization revenue hit $463 million, up 11% from the previous quarter and a notable 105% increase YoY. Full-year revenue rose 1% to $1.6 billion. NVIDIA OmniverseTM was adopted by the automotive-configurator ecosystem, and the new NVIDIA RTX 2000 Ada Generation GPU was introduced, showcasing cutting-edge AI, graphics, and compute tech for compact workstations.
In Q4, automotive revenue hit $281M, up 8% QoQ but down 4% YoY. Full-year revenue rose 21% to $1.1B, propelled by greater adoption of NVIDIA DRIVE® by Great Wall Motors, ZEEKR and Xiaomi.
Looking forward, NVIDIA anticipates achieving revenue of $24B in the first quarter of fiscal year 2025.
While concerns over Nvidia’s supply have diminished, persistent challenges remain, especially regarding artificial intelligence demand and geopolitical factors. The company is poised to face repercussions from heightened US export controls, particularly impacting its business in China. The full extent of this impact remains uncertain, posing ongoing uncertainties for Nvidia’s future operations.
Reference: Nvidia | nasdaq | cnbctv18 | livemint
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