Nvidia shares top $1,000 as the chipmaker climbs for the top

24 May 2024, 15:21 published

[ad_1]

Nvidia shares surged above $1,000 in extended trading on Wednesday after the chipmaker reports its first-quarter earnings, exceeding Wall Street expectations.

For the quarter that ended April 28, Nvidia reported $26.04 billion in revenue, beating the anticipated $24.65 billion by a considerable mark, and up a staggering 262% year-on-year.

The company’s robust performance highlights the continuing strong demand for its AI chips, positioning it among the global leaders for AI technologies.

Nvidia shares skyrocket after earnings call

Despite being the first company to hit a market cap of $3 trillion, Apple has now slid to second place with a market cap of just $2.87 trillion, making room for Microsoft which now stands at $3.17 trillion.

Having flirted its way into the top 10, and then the top 5, Nvidia’s market cap stood at $1.21 trillion at the beginning of this year. Today, that stands at $2.55 trillion, putting it just a few paces behind Apple and in good stead to overtake the Cupertino giant.

Nvidia co-founder and CEO Jensen Huang commented on the California company’s performance: “The next industrial revolution has begun – companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center – AI factories – to produce a new commodity: artificial intelligence.”

The company also announced a ten-for-one stock split, effective June 7, to make shares more accessible for employees and investors.

Among the highlights was data center revenue, which soared 427% year-over-year to $22.6 billion.

Despite having some in-house chips, Nvidia’s components were in hot demand among rival tech giants like Google, Microsoft, Meta, Amazon and OpenAI, fueling the ongoing AI boom.

With record revenues and a strategic focus on AI advancements, Nvidia’s future looks strong. Huang added: “We are poised for our next wave of growth,” indicating the company’s trajectory to overtake Apple, and eventually Microsoft, to become the world’s most valuable company.