Key Points:
- Stock Market Surge: Nvidia’s stock hits $1,224.40, rising 5%, with a $3 trillion market cap, ranking it second in the US.
- Annual Performance: Nvidia’s stock grew 140% annually, 200% over a year, and 3300% in five years, outpacing Nasdaq’s growth.
Nvidia has been making waves in the stock market, with its current price at an impressive $1,224.40. The company’s stock has seen a notable increase of 5%, catapulting its market capitalisation to an astounding $3 trillion. This remarkable achievement positions Nvidia as the second-most-valuable company in the United States. The tech giant’s stock performance underscores its dominant position and robust investor confidence.
Year-to-Date, Nvidia Stock Surges 140%
The annual performance metrics reveal a staggering growth trajectory. The stock has surged by 140%, while the one-year increase is 200%. Over five years, Nvidia’s stock has soared by an astonishing 3300%. Compared to the Nasdaq’s gains—14% YTD, 29% over one year, and 126% over five years—Nvidia’s performance is extraordinary, highlighting its superior growth and market dominance.
Nvidia’s Q1 Revenue at $26B, EPS Rises 461%
Nvidia’s financial health is robust, as evidenced by its Q1 earnings report. The company reported an earnings per share (EPS) of $6.12 and a revenue of $26 billion, marking a 461% increase in EPS and a 262% revenue growth year-over-year. A significant portion of this revenue, $22.6 billion, came from its data centre segment, which saw a 427% year-over-year increase and 86% of total revenue. It’s gaming segment also contributed $2.6 billion, showcasing its diverse revenue streams.
Stock Split 10-for-1, Dividend Up to $0.10
In a strategic move to make its stock more accessible, Nvidia announced a 10-for-1 stock split, effective June 7. This split is expected to enhance liquidity and attract a broader investor base. Alongside this, Nvidia increased its Dividend from $0.04 to $0.10 per share, reflecting its strong financial position and commitment to returning value to shareholders.
Rubin Ultra to Debut in 2027
Nvidia continues to innovate, with significant product announcements enhancing its competitive edge. The Blackwell Ultra, announced in June 2024, is set for release in 2025. Following this, they scheduled the Rubin AI chip platform for 2026, and they will debut the Rubin Ultra in 2027. These advancements are poised to strengthen the market leadership and drive future growth.
Nvidia’s AI Chips Supply Amazon, Google, and Tesla
Nvidia remains the primary supplier of AI chips, catering to major clients like Amazon, Google, Meta, Microsoft, and Tesla. However, competition is intensifying. AMD is gearing up with the release of MI325X in 2024, MI350 in 2025, and MI400 in 2026. Intel’s Gaudi2 and Gaudi3 aim to undercut Nvidia on price. Furthermore, customers are strategising to reduce their dependence, highlighting the industry’s dynamic nature.
