NVIDIA’s Financial Triumph: Breaking the $2 Trillion Valuation Barrier

During Friday’s trading session, the market capitalization of Nvidia exceeded two trillion US dollars.

The company’s stock continued to grow following the announcement of its substantial profits for the last fiscal quarter last Wednesday.

During the fourth fiscal quarter, Nvidia reported revenues of $22.10 billion, marking a significant increase of 265% compared to the same quarter last year.

These figures surpassed the expectations of analysts who had previously estimated the company’s revenues to reach $20.6 billion.

The American company’s profits soared to approximately $12.29 billion, representing a massive increase of 770% compared to the same quarter last year when the company’s profits were $1.4 billion.

Nvidia has capitalized on the artificial intelligence revolution sweeping the tech sector, which primarily relies on the company’s expensive processors to power the servers that operate various AI systems.

The company announced that it anticipates sales of $24 billion for the current quarter.

Jensen Huang, the CEO of the company, stated that the conditions are exceptional for sustained growth.

NVIDIA has recently surpassed Amazon and Alphabet—the parent company of Google—in market value. It has become the third American company to exceed a market capitalization of two trillion dollars, following Apple and Microsoft.

Other companies, such as OpenAI, Microsoft, and Intel, are working to lessen their reliance on Nvidia by developing their own artificial intelligence chips.

However, achieving the performance level and production capabilities of Nvidia’s processors remains a distant goal at present.

It is expected that Nvidia will announce its new high-performance artificial intelligence chips during the current quarter of 2024.