FILE – CEO Jensen Huang walks on stage before the keynote address of Nvidia GTC in San Jose, Calif., Monday, March 18, 2024. Nvidia’s stock price has jumped 92% this year as of Wednesday, May 22, increasing the company’s market value by more than $1 trillion. Those numbers are headed higher again Thursday after the company reported better-than-expected quarterly results. (AP Photo/Eric Risberg)
Nvidia’s stock price has more than doubled this year after more than tripling in 2023 and it’s now the third most valuable company in the S&P 500. Nvidia’s stock rose again Monday after it announced new technology and plans to advance artificial intelligence, or AI, applications.
The company is also about to undergo a stock split that will give each of its investors nine additional shares for everyone that they already own.
READ: Nvidia replaces Alphabet as Wall St’s third most valuable company
The chipmaker has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. The company’s revenue more than tripled in the latest quarter from the same period a year earlier.
READ: Nvidia’s Q1 profit soars, underscoring its dominance in chips for AI
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:
10 for 1
The company’s 10-for-1 stock split goes into effect at the close of trading on Friday, June 7, and is open to all shareholders of record as of Thursday, June 6. The move gives each investor nine additional shares for every share they already own.
Companies often conduct stock splits to make their shares more affordable for investors. Nvidia’s stock closed Friday at $1,150, and it’s just one of nine companies in the S&P 500 with a share price over $1,000.
$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.
$132 billion
That’s the increase in Nvidia’s market value as of Monday. The gains came following announcements from Nvidia at the Computex 2024 exposition detailing advancements and plans for its AI technology.
$2.829 trillion
Nvidia’s total market value as of the close of trading Monday. Earlier this year, it passed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.073 trillion) and Apple ($2.975 trillion). The company was valued at around $418 billion two years ago.
53.4%
Nvidia’s estimated net margin, or the percentage of revenue that gets turned into 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 percent in its most recent quarter and Microsoft’s was 36.4 percent. Both those companies have significantly higher revenue than Nvidia, however.