Nvidia shares surged above $1,000 in extended trading after the chipmaker reported first-quarter earnings which exceeding Wall Street expectations.
For the quarter that ended April 28, 2024, 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 Nvidia as one the global leaders for the space.
Nvidia shares skyrocket
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 2024 - which today stands at $2.55 trillion, just a few paces behind Apple and in good position stead to overtake the Cupertino giant soon.
“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," Nvidia co-founder and CEO Jensen Huang commented.
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, as Huang added it was, “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.
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