NVIDIA's Market Value is Now Larger Than Amazon and Tesla Combined

In a milestone for Nvidia, the AI chipmaker's market capitalization has reached approximately $2.59 trillion. To put that in perspective, Amazon's market cap is about $1.91 trillion, and Tesla's market cap stands at around $574.40 billion. When combined, Amazon and Tesla's market caps total roughly $2.48 trillion, which confirms that Nvidia's market cap has surpassed the combined market cap of these two tech giants. This is a significant indicator of Nvidia's growth and its impact on the tech industry.

US stock indices have also risen to fresh all-time highs in early trading, boosted by NVIDIA's another set of blockbuster results. It is the company's results that pushed the chipmaker's market value over $2.5 trillion for the first time.

Investors have become hooked on NVIDIA as the company has consistently blown past analysts' revenue and margin forecasts and emerged as the dominant provider of the graphical processing units that power generative Al.

Nvidia's financial performance in the past quarter has been remarkable. The company reported a 265% increase in revenue, reaching $22.1 billion. This growth is significantly higher than the previous quarter's revenue of $18.12 billion, which itself was a 206% increase from the year before.

With this, the chipmaker has also announced a 10-for-one stock split and is raising its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock. The increased dividend is equivalent to $0.01 per share on a post-split basis and will be paid on Friday, June 28, 2024, to all shareholders of record on Tuesday, June 11, 2024.

The substantial revenue growth can be attributed to several factors, including a record quarterly Data Center revenue of $18.4 billion, which is up 27% from the previous quarter and an impressive 409% from the same period last year. Nvidia's strategic focus on accelerated computing and generative AI has played a crucial role in this surge, meeting the high demand from various sectors such as cloud-service providers, enterprise software, and consumer internet companies.

Nvidia's CEO, Jensen Huang, highlighted that the company's Data Center platform is powered by increasingly diverse drivers, and vertical industries like auto, financial services, and healthcare are now at a multibillion-dollar level¹. This performance underscores Nvidia's strong position in the semiconductor industry and its successful expansion into high-growth areas.

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