Economy Nvidia’s stock market value is nearly $2.6 trillion. How it rose to AI prominence, by the numbers

[LeonardoBjj]

Nvidia’s stock price has more than doubled this year as of the close of trading Thursday, increasing the company’s market value by more than $1.3 trillion. Those numbers are headed higher again Thursday after the company reported better-than-expected quarterly results.

The chipmaker has seen soaring demand for its semiconductors, which are used to power artificial intelligence, or AI applications. The company’s revenue more than tripled in the latest quarter from the same period a year earlier.

It’s the latest sign that the excitement surrounding artificial intelligence likely won’t subside anytime soon. Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing some eye-popping numbers. Here’s a look:

$221 billion​

That’s the increase in Nvidia’s market value on Thursday alone. Notably, it’s only the second-biggest one-day gain in the company’s market value this year following a record jump of $273 billion on Feb. 22. Thursday gains came after Nvidia said net income rose more than sevenfold compared to a year earlier, jumping to $14.88 billion in its first quarter that ended April 28 from $2.04 billion a year earlier.

$1.374 trillion​

The amount Nvidia’s market value has increased so far this year, according to FactSet. In other words, Nvidia’s year-to-date gain is more than equal to the market value of Facebook and Instagram parent Meta Platforms. In all, just six of the 500 companies in the S&P 500 have market caps above $1.152 trillion, including Nvidia.

$2.593 Trillion​

Nvidia’s total market value as of the close of trading Thursday. Earlier this year, it passed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.172 trillion) and Apple ($2.864 trillion). The company was valued at around $418 billion two years ago.

$1,037.99​

Nvidia’s price at the close of trading Thursday, making it just the ninth company in the S&P 500 with a share price over $1,000 (which sounds more notable than it is.) That will soon change however. On Wednesday, Nvidia announced that it plans a 10-for-1 stock split, meaning there will be 10 times more shares outstanding, but the price of each will be closer to $100 each. The company said the split, effective after markets close on June 7, will make its shares more accessible to employees and investors.

$26 billion​

Revenue for Nvidia’s most recent fiscal quarter. That’s more than triple the $7.2 billion it reported in the same period a year ago. Wall Street expects Nvidia to bring in revenue of $117 billion in fiscal 2025, which would be close to double its revenue in 2024 and more than four times its receipts the year before that.

53.4%​

Nvidia’s estimated net margin, or the percentage of revenue that gets turned in profit. Looked at another way, about 53 cents of every $1 in revenue Nvidia took in last year went to its bottom line. By comparison, Apple’s net margin was 26.3% in its most recent quarter and Microsoft’s was 36.4%. Both those companies have significantly higher revenue than Nvidia, however.

https://apnews.com/article/nvidia-a...market-value-f1d89b8ec62f3a8556e332a46c39507c

 

[Kowboy On Sherdog]

 

[Rob Battisti]

I had a chance to join in 2018 with a starting equity grant of 250k and the stock was around $35.

With equity refreshers of around 70-100k a year I would be worth upwards of $10,000,000. FML.

 

[Staph infection]

I had a chance to join in 2018 with a starting equity grant of 250k and the stock was around $35.

With equity refreshers of around 70-100k a year I would be worth upwards of $10,000,000. FML.

It would all be gone once Skynet goes online. AI is going to kill us, look how all of this AI stuff is being integrated into Windows and various other tech based things that we use. Once it has access to everything and becomes self aware we are done.

 

[Ruprecht]

Considering the current trend in useless devices and whacking "AI" as a buzzword on literally everything, from bird feeders and dog bowls to massage chairs and roller shoes, it does somewhat remind me of the dotcom bubble.

 

[Madmick]

Considering the current trend in useless devices and whacking "AI" as a buzzword on literally everything, from bird feeders and dog bowls to massage chairs and roller shoes, it does somewhat remind me of the dotcom bubble.

Hm, sort of the same way on at least three separate occasions the tech industry went on these sort of glorified ~1-year cooperative marketing campaigns billy clubbing us over the head with the insistence VR/AR had arrived as the future of movies, gaming & business? The future is now, they said.

I liked this hustle better the first time I heard it...

Spoiler: Anaglyph glasses: behold the future

 

[Ruprecht]

Hm, sort of the same way on at least three separate occasions the tech industry went on these sort of glorified ~1-year cooperative marketing campaigns billy clubbing us over the head with the insistence VR/AR had arrived as the future of movies, gaming & business? The future is now, they said.

I liked this hustle better the first time I heard it...

Spoiler: Anaglyph glasses: behold the future

The mass investment in VR over inflating values was almost entirely from Zuckerberg/Meta, and it was the fact they'd overpay to acquire anything that was vaguely interesting that drove BS stock prices and startup valuations. Zuckerberg is a true believer though. No pump and dump scheme from Meta, Zuckerberg put his money where his mouth is.
Also a much smaller phenomenon than the dotcom bubble or the massive increase in AI investment currently.
There just wasn't the same degree of money (especially venture capital) being poured into corporations that had no revenue (not talking Nvidia here obviously) in the way there currently is with AI and previously was with the dotcom bubble.
Likewise, just because there's a lot of nonsense products and overvaluation of companies (even companies that weren't nonsense and did have revenue, such as Cisco), didn't mean ecommerce was bullshit and doesn't mean that AI won't drive massive change. Just that the initial hype is likely to be followed by a period of rationalisation and correction.
Like with online migration, VR, PC performance, the IoT, smartphone capabilities and other revolutionary technologies, initial assertions that it's the start of exponential growth, often turn out to be a reality of logarithmic growth instead.

 

[avenue94]

Considering the current trend in useless devices and whacking "AI" as a buzzword on literally everything, from bird feeders and dog bowls to massage chairs and roller shoes, it does somewhat remind me of the dotcom bubble.

AI will go somewhere but it's hard to say where, just bcause almost no one other than fabs or chip designers are making money on it. And for all the promise of revolutionary advancements, we've only seen evolutionary gains, and more importantly, the same revenue models. Reminds me a lot of Shazam.

 

[86'd]

Meanwhile cuckmafia and the rest of sherdog in the stock threads were pumping AMD.

Lol @ daytraders in a karate forum

 

[nostradumbass]

Meanwhile cuckmafia and the rest of sherdog in the stock threads were pumping AMD.

Lol @ daytraders in a karate forum

AMD also went from $90 last Halloween to like $220 by St Patrick's day.

AI is the current bubble, and it'll drop back at some point. EVs had them a couple years ago. Tesla was the main one that would pump every day like NVDA is now and has now settled into well off the high and moving like any other stock. NIO pumped to like $65 and is now sitting under $5, a bunch of crap EV startups would pump, lidar had their little move, all fell back down.

 

[86'd]

AMD also went from $90 last Halloween to like $220 by St Patrick's day.

AI is the current bubble, and it'll drop back at some point. EVs had them a couple years ago. Tesla was the main one that would pump every day like NVDA is now and has now settled into well off the high and moving like any other stock. NIO pumped to like $65 and is now sitting under $5, a bunch of crap EV startups would pump, lidar had their little move, all fell back down.

You mean to say dropped to 90 last October when it had previously risen to like 180 in the prior year. It is now only reclaiming it’s price after being stagnant while NVDA goes brrrrrrrrrr

 

[nostradumbass]

You mean to say dropped to 90 last October when it had previously risen to like 180 in the prior year. It is now only reclaiming it’s price after being stagnant while NVDA goes brrrrrrrrrr

NVDA dropped from like 350 to 110 as well, and is now back up, but in the time I'm talking about, last october, NVDA was already nearly $500, so it's doubled since then and AMD went up 250%, then came back down and now back up again to nearly double where it was. NVDA is obviously is a ridiculous bubble, but it's not like AMD hasn't been running too.

 

[86'd]

NVDA dropped from like 350 to 110 as well, and is now back up, but in the time I'm talking about, last october, NVDA was already nearly $500, so it's doubled since then and AMD went up 250%, then came back down and now back up again to nearly double where it was. NVDA is obviously is a ridiculous bubble, but it's not like AMD hasn't been running too.

Regardless the smarter play is and always was NVDA.

Sherdog was also shitting all over TSLA but yet again, bubbles do not matter if it’s what the masses are buying and continue to buy.

Balance sheets/ PE ratios etc mean fuck all

 

[nostradumbass]

Regardless the smarter play is and always was NVDA.

Sherdog was also shitting all over TSLA but yet again, bubbles do not matter if it’s what the masses are buying and continue to buy.

Balance sheets/ PE ratios etc mean fuck all

Bubbles certainly matter to the bagholders when it bursts. The people who bought Tesla at 1200 pre split aren't going to be seeing that money again anytime soon.

 

[ColemanwastheGOAT]

You mean to say dropped to 90 last October when it had previously risen to like 180 in the prior year. It is now only reclaiming it’s price after being stagnant while NVDA goes brrrrrrrrrr

Why does that matter? What matters is when you buy in and when you sell.

 

[86'd]

Why does that matter? What matters is when you buy in and when you sell.

It matters because the % gains in comparison to NVDA is minuscule.

NVDA stock price increase for long haulers over the past 5 years = 3,043.46%

AMD stock price for the long haulers over the past 5 years = 506.93%

 

[ColemanwastheGOAT]

It matters because the % gains in comparison to NVDA is minuscule.

NVDA stock price increase for long haulers over the past 5 years = 3,043.46%

AMD stock price for the long haulers over the past 5 years = 506.93%

Sure but if you invested in AMD at the right time, you still made a killing.

You're doing gambler's math.