Nvidia Stock Rises To Record $277 Billion
NVIDIA’s stock rose 16%, adding $277 billion to its market cap, surpassing $2 trillion, the highest single-day increase in history.
The corporation posted impressive fiscal year 2024 results, with revenue jumping 126% to $60.922 billion and net profit rising 581% to $29.76 billion.
NVIDIA wants to expand into cloud inference, ASIC market entry, and telecom base station collaboration to tap into new client segments and market prospects while reinforcing its business basis for ongoing development.
NVIDIA’s stock price rose 16% on Thursday, adding $277 billion to its $2 trillion market valuation. The stock made a record one-day market cap rise, surpassing Meta Platforms’ $196.8 billion three weeks earlier.
NVIDIA revealed its fiscal year 2024 and fourth-quarter results on the 22nd. Revenue rose 126% to $60.922 billion in fiscal year 2024, and net profit rose 581% to $29.76 billion. In the fourth quarter of fiscal year 2024, revenue was $22.103 billion, up 21.98% quarter-on-quarter and 265.28% year-on-year; net profit was $12.285 billion, up 32.91% quarter-on-quarter and 768.81% year-on-year. The business estimates first-quarter fiscal year 2025 revenue to be $24 billion, with a 2% variation, a 7% quarter-on-quarter increase, and a 234% year-on-year growth.
ASIC market entry by Nvidia.
According to NVIDIA’s financial report, cloud inference will gradually replace cloud training to meet demand, and as cloud smart computing centers expand, network product demand will grow faster. NVIDIA plans to enter the ASIC market to reduce competition with customers’ self-developed chips, maintain its absolute market share, and gain experience and customers to lower computing chip costs. Collaboration with SoftBank, Ericsson, and other telecom base station companies should also boost edge computing sales. The company is stabilizing its business base and exploring new customer groups and market space to lay the groundwork for long-term growth.
Data centers are in high demand.
NVIDIA revenue is rising, and data center demand is still rising. The company’s rapid revenue growth reflects rising global processing power need. The increased iteration of huge models like Sora and Gemini1.5 and the marketing of commercial applications based on them implicitly suggest that processing power requirements will continue into 2024. The business is a global leader in AI chips, and accelerated computing and AIGC should help it grow.
