One stock has created a stir in the American stock market these days, this stock is Nvidia. Nvidia is on its way to becoming the most powerful company. It is just a few steps from becoming the world's second-largest company. In terms of market capitalization, it has greatly reduced the gap between Apple.
Nvidia's Market Cap Surge
Currently, Apple is the second largest company in the world. Microsoft is at number one. Due to the rise in Nvidia's shares, its market cap has increased rapidly. In just nine months, Nvidia's market cap doubled, rising from $1 trillion to $2 trillion.
During this period, it left many of the world's leading companies behind in terms of market cap. These include Amazon, Google's Alphabet, and Saudi Arabia's oil company Aramco.
Nvidia's Market Position
Currently, Nvidia's market cap is more than $2,00,000 crore. This is just $230 billion less than Apple's value. And this is $645 billion less than Microsoft's value.
- NVIDIA's total market capitalization as of March 19, 2024 is $2.188 trillion
On February 22, Nvidia's stock had a spectacular rise. Due to its momentum, the company's market cap saw an increase of $277 billion in a single day on February 22. If seen in Indian Rupees, the market cap increased by around Rs 22,00,000 crore in just one day. India's largest company is Reliance Industries. Its market cap is currently Rs 20,20,000 crore.
Talking about the total market cap of Nvidia has crossed $ 2,00,000 crore. This means that it is half the size of India's economy. India's economy is worth $ 4,00,000 crore. Nvidia has overtaken big companies like Google, Tesla, Facebook and Berkshire Hathaway in market cap.
Nvidia's Impact on the Market
Nvidia has changed the game of the market in the last few years. Global brokerage firm The Goldman Sachs Group has termed Nvidia's stock as the most important stock on earth. Nvidia's stock has gained 45 percent this year, while Meta Platforms' stock has gained 46.6 percent.
Currently Nvidia is in the business of chip manufacturing, artificial intelligence, and software. Earlier Nvidia used to make only graphics processing units (GPU). Today, about 88 percent of the total GPUs used worldwide are from Nvidia. In 2006, the company started work on Artificial Intelligence.
Nvidia's Role in Advancing AI
ChatGPT's popularity around the world has added to Nvidia's success. The supercomputer has 10,000 graphics chips to power OpenAI. This graphics chip is from Nvidia. These 10,000 chips are needed to train ChatGPT and their cost is said to be around 1000 million dollars.
Overall, Nvidia is now working as the biggest partner in changing the world. With the increasing use of AI, the company's business is continuously expanding rapidly. Nvidia is getting the benefit of this. The strong buying in Nvidia's shares is due to its strong performance in the December quarter.
Financial Performance and Outlook
Nvidia's revenue in the December quarter increased 265 percent year-on-year to $ 22 billion. At the same time, income from data centers increased by 409 percent on an annual basis to $ 18.4 billion. Gross margin increased from 63.3 percent to 76 percent on an annual basis.
Earnings and margins grew more than expected. This led to a frenzy of buying Nvidia's stock. Now, the company is on its way to becoming the world's second-largest. How did you like the information? Do let us know by commenting.
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