The US non-farm payroll data boosted the US stock market, with technology stocks celebrating; nvidia rose more than 5% intraday, and its total market capitalization exceeded 3 trillion US dollars, becoming the second largest listed company after Microsoft.
$NVIDIA (NVDA.US)$Becoming the second largest listed company in the US stock market.
On Wednesday overnight, US "small non-farm" data added signs of economic weakness, enhanced the Fed's interest rate cut expectations for the year, U.S. Treasury yields fell, and U.S. technology stocks soared. Nvidia's stock price hit a new all-time high, closing up more than 5%, driving market cap through the 30 trillion dollar mark for the first time, becoming the third company with a market cap of more than 30 trillion dollars after Apple and Microsoft, and surpassing Apple to become the second largest listed company in the US stock market after Microsoft.
Since the release of OpenAI's ChatGPT at the end of 2022, Nvidia's stock price has shown a significant acceleration in its rise. So far this year, Nvidia's stock price has risen by more than 150%, and it rose by about 200% last year. In the past five years, it has risen by more than 3300%, far outpacing the rise of the same period of Nasdaq index.
This week, Nvidia's stock price surge was due to the company's CEO Huang Renxun's statement at the industry conference last weekend. He announced that the company plans to launch the high-performance version of the Blackwell chip, Blackwell Ultra, in 2025, and launch a new AI chip platform Rubin in 2026. Rubin's Ultra version will be unveiled for the first time in 2027. As a top-tier supplier of AI chips and integrated software, Nvidia's products are widely used by many technology giants such as Amazon, Google, Meta, Microsoft, and Tesla to support their cloud AI products, as well as their own AI models and services.
Secondly, in the recent impressive Q1 financial report, Nvidia's adjusted eps reached $6.12 and revenue was as high as $26 billion, achieving significant growth of 461% and 262% respectively compared to the same period last year. The data center business achieved a year-on-year revenue growth of 427% in the previous quarter, reaching $22.6 billion, accounting for 86% of the company's total revenue. Nvidia's gaming business also achieved $2.6 billion in revenue.
At the same time, Nvidia announced two important financial decisions, namely, the stock will be split 10 to 1 on June 7th, and the company plans to increase the dividend per share from $0.04 to $0.10.
However, Nvidia is not without competitors in the AI chip market. AMD and Intel are also actively developing their own AI chips in an attempt to gain an advantage in the competition. AMD announced that its MI325X and MI350 chips will be launched in 2024 and 2025 respectively, and its next generation MI400 AI accelerator platform is expected to be launched in 2026. Intel claims that its Gaudi 2 and Gaudi 3 AI accelerators will be more competitive in price.
In addition, Nvidia also faces competition from its customers. Companies such as Amazon, Google, and Microsoft are trying to reduce their dependence on Nvidia chips in order to achieve savings in capital expenditure.
Edited by Jeffrey