NVIDIA The company’s shares have more than doubled so far this year after more than tripling in 2023, and it is now the third-largest company by market capitalization in the S&P 500. Nvidia’s shares rose again on Wednesday, pushing its market capitalization past $3 trillion.
The company also plans to carry out a stock split that will give investors nine additional shares for each share they already own.
The company is seeing a surge in demand for semiconductors used in artificial intelligence applications. Revenues increased more than threefold In the most recent quarter, it was down compared to the same period last year.
Positioned as one of the most prominent companies in the AI space, Nvidia produces some impressive numbers, including:
$3.011 trillion
Nvidia’s market capitalization as of Wednesday was $418 billion. The company overtook Amazon and Alphabet earlier this year to become the third-largest public company by market capitalization, behind Microsoft ($3.168 trillion) and Apple ($3.29 trillion). Two years ago, the company’s market capitalization was about $418 billion.
$147 billion
That was the largest one-day increase in Nvidia’s market capitalization on Wednesday.
10 in 1
The company’s 10-for-1 stock split will take effect at the close of trading on Friday, June 7, and will apply to all shareholders who are on the shareholder register as of Thursday, June 6. The move will result in each investor receiving nine additional shares for each share they already own.
Companies often use stock splits to make their shares more affordable for investors. Nvidia’s shares closed at $1,224.40 on Wednesday, making it one of 11 S&P 500 companies with a stock price above $1,000.
$26 billion
Nvidia’s revenue in its most recent quarter was more than triple the $7.2 billion it earned in the same period last year. Wall Street expects Nvidia to earn $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 revenue that goes to profit. Another way to look at it is that for every dollar of revenue Nvidia made last year, about 53 cents went to its bottom line. By comparison, Apple’s net profit margin in its most recent quarter was 26.3%, and Microsoft’s was 36.4%, but both companies’ revenues were significantly higher than Nvidia’s.
