Nvidia still cannot find a limit to its stock market rise fueled by artificial intelligence. The company co-founded and led by Jensen Huang surpassed the trillion dollar mark just over a year ago, It entered the two billion club last February and this Wednesday it surpassed three billion in stock market value for the first time. Only two other companies in the world have reached a similar value. One is Microsoft, world leader by market capitalization, and the other is Apple, which Nvidia hunted down this Wednesday.
For the first time, Nvidia’s market capitalization has been ahead of that of the company founded by Steve Jobs and directed by Tim Cook, although the distances between the two are minimal and at times they alternated positions. At the close of the usual contracting hours, at 4:00 p.m. on the East coast of the United States (six hours more in mainland Spain), Nvidia was worth around 3,005 billion dollars and Apple, 3,001 billion. Microsoft is ahead, with 3.14 billion, but it is no longer a utopia for Nvidia to become the first company in the world by stock market value.
At the close of the session, the microprocessor designer has recorded a rise of more than 5%, accumulating a revaluation of more than 150% so far in 2024 and more than 200% in one year. Apple’s latest stock market rise occurs in the heat of the presentation of future products with greater computing capacity and on the eve of the company committing a split (split) of each of its shares by 10, as announced when presenting results. This operation has a neutral economic effect, but is usually well received by the market as it apparently makes the shares cheaper, which this Wednesday closed at $1,224.40.
Investors are still celebrating the results and forecasts published last week by the company, but a new factor has shown that the fever for artificial intelligence has a long way to go. Nvidia’s revenue soared 262% in the first quarter of its fiscal year, up to $26,044 million (about €24,000 million at the current exchange rate) and profits multiplied by more than seven, going from 2,043 to 14,881 million dollars, an increase of 628%, exceeding analysts’ expectations. For the second quarter, it has reported that it expects to bill around $28 billion, with a gross margin of 74.8%, also above what the market expected.
Apple has remained somewhat stagnant while its competitors have overtaken it. In the last year, it has only appreciated 9%. Investors are not clear about its advances in artificial intelligence, partly integrated into its systems and products, but which have not dazzled with the power of Microsoft and OpenAI.
The previous time Nvidia was worth more than Apple was in 2002, five years before the launch of the first iPhone. At the time, both companies were worth less than $10 billion each. Nobody imagined the success they were going to have in the following two long decades.
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