Everything suits Nvidia well. While the euphoria over the results presented last week has not yet died down, the financing round undertaken by xAI, the artificial intelligence company founded by Elon Musk, has once again given another boost to the microprocessor giant. With this, the company has risen more than 7% on the stock market this Tuesday, accumulating an increase of 20% in three sessions, marking one historical maximum after another and is already hot on the heels of Apple in terms of market capitalization. With its rise this Tuesday, Nvidia has accumulated a rise of 137% so far this year.
The company from Santa Clara (California) has reached a stock market value of 2.81 trillion dollars, only about 100 billion dollars away from Apple, the second company in the market, behind Microsoft, which consolidates its leadership with 3, 2 billion dollars of capitalization. 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.
The xAI firm, founded by Elon Musk less than a year ago, announced on Sunday the closing of a financing round in which it raised $6 billion, bringing the startup’s valuation to $24 billion, including the money received. That money, as revealed The Information, It will largely be used to purchase H100 artificial intelligence accelerators, manufactured by Nvidia, in further proof that demand will continue to outstrip supply for quite some time. Although Intel, Samsung and some large technology companies are trying to create their own accelerators, For now, this market for integrated circuits with great computing capacity is in practice a monopoly of the firm led by Jensen Huang.
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.
The data center business is the driver of revenue, with $22,563 million in the quarter, a figure that is more than five times that of a year ago. This division already accounts for 87% of the company’s turnover, compared to 60% in the first quarter of last year. The company is developing turnkey solutions and preparing to launch its Blackwell product, a next-generation ultra-powerful computing platform.
Beyond cloud computing providers, generative artificial intelligence has expanded to consumer internet companies and enterprise customers, and to sectors such as automotive, healthcare and governments, creating multiple multibillion-dollar vertical markets, the company told present your results.
Nvidia announced a split (split) of each share by 10, which will lower its nominal price, “to make the shares more accessible to employees and investors,” as he explained. Economically, it is a neutral operation, but it is usually well received by the market. Nvidia also announced a 150% increase in the dividend, from 4 to 10 cents per current share.
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