Nvidia's market value rose by $273 billion in one day. How AI became famous, in numbers

• Post by: Admin
• Feb 23 2024

Nvidia's stock price rose 16% on Thursday, adding a staggering $273 billion to the company's market value in just one day, a record

Nvidia's market value rose by $273 billion in one day. How AI became famous, in numbers

Nvidia's stock price rose 16% on Thursday, adding a staggering $273 billion to the company's market value in just one day, a record

The chipmaker is seeing increasing demand for its semiconductors used for artificial intelligence or AI applications. The company's revenue more than tripled in the most recent quarter compared to the same period last year.

It's the latest sign that enthusiasm for artificial intelligence isn't going away any time soon. Nvidia, which has positioned itself as one of the most prominent players in AI, has put up some jaw-dropping numbers. Here's a look:

$273 billion

According to FactSet, Nvidia Corp.'s market value is rose on Thursday alone. The previous record single-day jump was Meta Platform's $205 billion profit on February 2 this year. In other words, Nvidia's one-day profit exceeds the combined market value of market leaders Bank of America ($265 billion) and Coca-Cola ($263 billion). In total, only 26 of the 500 companies in the S&P 500 have a market capitalization of over $273 billion, including Nvidia.

$1.915 trillion

Nvidia's total market value as of Thursday's close. It recently overtook Amazon and Alphabet to become the third most valuable publicly traded company, behind Microsoft ($3.051 trillion) and Apple ($2.845 trillion). A year ago, the company was worth around $580 billion.

$60.9 billion

Revenue for the fiscal year that ended Jan. 28 is more than double Nvidia's revenue for 2022 and about six times what it was five years ago. Wall Street expects Nvidia's revenue to top $100 billion in fiscal 2025.

48.8%

That's Nvidia's net margin, or the percentage of sales that converts to profit. In other words, nearly 50 cents of every dollar Nvidia made last year went toward the bottom line. In comparison, Apple's net margin is 25.3% and Microsoft's is 34.1%. However, both companies achieve significantly higher sales than Nvidia.