Nvidia’s Market Value Surges to $1 Trillion in 2024: A Look at its Rise to AI Prominence Through Data

Nvidia’s stock price has been on a meteoric rise this year, jumping 92% and increasing the company’s market value by over $1 trillion. The chipmaker’s success continued on Thursday as it reported better-than-expected quarterly results, sending its stock price even higher.

The soaring demand for Nvidia’s semiconductors, which power artificial intelligence applications, has been a key driver of the company’s impressive performance. In the latest quarter, Nvidia’s revenue more than tripled compared to the same period last year, highlighting the strong growth in the AI sector.

With a total market value of $2.374 trillion as of Wednesday, Nvidia has solidified its position as one of the most valuable public companies in the world. The company’s market cap has increased by $1.152 trillion so far this year, surpassing tech giants like Amazon and Alphabet.

Nvidia’s stock price opened at $1,020.28 on Thursday, making it one of just nine companies in the S&P 500 with a share price over $1,000. However, the company announced a 10-for-1 stock split, which will make its shares more accessible to employees and investors.

In the most recent fiscal quarter, Nvidia reported revenue of $26 billion, a significant increase from the previous year. Wall Street analysts expect the company to bring in $117 billion in revenue in fiscal 2025, reflecting the strong growth trajectory Nvidia is on.

With an estimated net margin of 53.4%, Nvidia is turning a significant portion of its revenue into profit. This impressive margin outpaces tech giants like Apple and Microsoft, highlighting Nvidia’s strong financial performance and market position in the AI industry.