Nvidia stock has risen 92% this year as of Wednesday, adding more than $1 trillion to the company’s market capitalization. That figure is expected to rise again on Thursday after the company reported better-than-expected quarterly results.
The chipmaker is seeing surging demand for semiconductors used to power artificial intelligence and AI applications. Its revenue in the latest quarter more than tripled from the same period a year ago.
It’s the latest sign that the excitement around artificial intelligence isn’t going away anytime soon. Nvidia, which ranks as one of the most prominent companies in the AI field, is producing astonishing numbers. The outline is as follows.
$1.152 trillion
That’s how much Nvidia’s market value has increased so far this year as of May 22, according to FactSet. In other words, Nvidia’s year-to-date gains are roughly equal to the market value of MetaPlatform, the parent company of Facebook and Instagram. Of the 500 companies in the S&P 500, only six companies, including Nvidia, have a market capitalization of more than $1.152 billion.
$2.374 trillion
NVIDIA’s market capitalization as of Wednesday’s close. Earlier this year, the company overtook Amazon and Alphabet to become the third-largest public company by market capitalization, behind Microsoft ($3.2 trillion) and Apple ($2.927 trillion). Two years ago, the company’s market capitalization was about $418 billion.
$1,020.28
NVIDIA’s price at the start of trading Thursday makes it the ninth company in the S&P 500 with a stock price above $1,000 (which sounds more noteworthy than it actually is). But things will change soon. On Wednesday, NVIDIA announced that he is planning a 10-for-1 stock split. That means there will be 10x more shares outstanding, but each share will cost nearly $100 per share. The company said the split, which will take effect after the market closes on June 7, will make its stock more accessible to employees and investors.
$26 billion
Nvidia’s revenue for its latest fiscal quarter is more than triple the $7.2 billion it earned in the same period a year ago. Wall Street expects Nvidia to bring in $117 billion in revenue in fiscal 2025, nearly double its 2024 revenue and more than four times its revenue the year before that.
53.4%
Nvidia’s estimated net profit margin, or the percentage of its revenue that turns into profit. Another way to look at it is that about 53 cents of every dollar of revenue Nvidia earned last year went to its bottom line. By comparison, Apple’s net profit margin for its most recent quarter was 26.3%, and Microsoft’s was 36.4%. However, the revenues of both companies are significantly higher than his Nvidia.
