Anindita Nayak
Bhubaneswar, 6 June
Nvidia has crossed a market capitalization of $3 trillion in the Nasdaq on Wednesday as the company’s shares witnessed increased buying interest among investors. The chip giant’s share has more than doubled this year.
With such market capitalization, Nvidia now becomes the third most valuable company in the S&P 500. While the market value of Nvidia touched $3.011 trillion, Microsoft’s market cap was at $3.168 trillion, & Apple’s at $3.029 trillion.
Two years back, Nvidia was valued at around $418 billion. Interestingly, the company added a market value of $147 billion on Wednesday. The demand for Nvidia’s chips, which are used in artificial intelligence-powered solutions, has skyrocketed in recent years as technology giants bet big on AI space. As a result, the company’s revenue more than tripled in the latest quarter compared to a year ago.
In Nvidia’s latest fiscal quarter, the company reported revenue of $26 billion, which was more than three times the $7.2 billion it earned in the same period last year. Analysts anticipate Nvidia to generate revenue of $117 billion in fiscal 2025, nearly doubling its revenue from 2024 and more than quadrupling its earnings from the previous year.
Nvidia’s estimated net margin stood at 53.4%. In comparison, Apple’s net margin in its latest quarter was 26.3%, and Microsoft’s was 36.4%. Despite having lower revenue compared to Apple and Microsoft, Nvidia’s net margin was significantly higher than other tech majors.
The company has announced a stock split in 1;10 ratio. It will translate into an investor getting nine extra shares for everyone he or she currently has.
Nvidia’s 10-for-1 stock split will take effect after trading ends on Friday, June 7, and will be available to all shareholders as of Thursday, June 6. Nvidia’s stock closed at $1,224.40 on Wednesday.
