Nvidia Stock Price Soars, About to Surpass Apple

Nvidia shares have nearly tripled in the past year, pushing the company's market value to $2.72 trillion, close to the $2.93 trillion valuation of Apple, which has long dominated Wall Street, Reuters reported.

Nvidia is on track to surpass Apple in market value to become the world's second largest, behind Microsoft.

This sea change has been taking place over the past year, culminating in Nvidia surpassing Apple in market value. Nvidia’s influence extends across the US stock market, with its heavy weighting in the S&P 500 and Nasdaq pushing those indexes to record highs.

Nvidia’s rise has been driven largely by the company’s growing role in AI. Its graphics processing units (GPUs) are integral to the functionality of AI applications, such as OpenAI’s ChatGPT. The company’s financial performance has been exceptional, with Nvidia reporting $26 billion in revenue and $6.12 in earnings per share (EPS) for the three months ended April 30. Those numbers beat analysts’ expectations, who had predicted EPS of $5.65 on revenue of $24.69 billion. Nvidia also projected revenue of $28 billion for the current quarter, well above Wall Street’s $26.6 billion expectations.

Nvidia’s data center division is also a significant growth driver. The unit focuses on AI-intensive applications and generated $22.6 billion in revenue last quarter, up 427% from the same period last year. Chief Financial Officer Colette Kress noted that major cloud providers account for about 45% of the company’s data center revenue.

Nvidia is the fastest-growing company, growing from $1 trillion to $2 trillion by 2024, outpacing tech giants like Amazon and Google. Its recent earnings report further solidified its position, with quarterly net income of $14.88 billion, or $5.98 per share, compared to $2.04 billion and $0.82 per share a year earlier.

Nvidia's impact extends beyond its financial achievements as its next-generation AI chip, Blackwell, is expected to drive further growth, with CEO Jensen Huang declaring: "We'll see Blackwell drive a lot of revenue this year."

Source: https://thanhnien.vn/gia-co-phieu-tang-vot-nvidia-sap-vuot-qua-apple-185240601070619844.htm