- NVIDIA’s stock saw a remarkable 16% surge, adding around $277 billion to its market capitalization, nearing the $2 trillion mark, marking the largest single-day market cap increase in history.
- The company reported strong financial results for fiscal year 2024, with revenue reaching $60.922 billion, a 126% increase year-on-year, and net profit rising to $29.76 billion, up 581% year-on-year.
- NVIDIA plans to expand its reach in areas like cloud inference, ASIC market entry, and collaboration in telecom base station businesses, positioning itself for sustained growth by tapping into new customer segments and market opportunities while consolidating its existing business foundation.
NVIDIA‘s stock price surged by 16% on Thursday, adding approximately $277 billion to its market capitalisation, which now approaches $2 trillion. The stock reached a historic high, marking the largest single-day market cap increase in history, surpassing Meta Platforms‘ record set three weeks ago of $196.8 billion.
On the 22nd, NVIDIA released its financial results for fiscal year 2024 and the fourth quarter. The company’s revenue for fiscal year 2024 was $60.922 billion, a year-on-year increase of 126%; net profit was $29.76 billion, a year-on-year increase of 581%. In the fourth quarter of fiscal year 2024, the company achieved revenue of $22.103 billion, an increase of 21.98% quarter-on-quarter and 265.28% year-on-year; net profit was $12.285 billion, an increase of 32.91% quarter-on-quarter and 768.81% year-on-year. The company expects revenue for the first quarter of fiscal year 2025 to be $24 billion, with a fluctuation of 2% and a quarter-on-quarter increase of about 7% and a year-on-year increase of about 234%.
Also read: Nvidia’s historic surge with AI-powered chip ignites investor frenzy
Nvidia plans to enter the ASIC market
From the composition of NVIDIA’s financial report, cloud inference is expected to gradually replace cloud training to meet demand, and with the expansion of cloud smart computing centres, the demand for network products is expected to grow faster; NVIDIA plans to enter the ASIC market to reduce competition with customers’ self-developed chips, maintain its absolute leading market share, and accumulate experience and customer base for long-term computing chip cost reduction. In addition, cooperation with SoftBank, Ericsson, and other telecom base station businesses is expected to open up the edge computing market. Overall, the company continues to explore new customer groups and market space while consolidating its existing business foundation, laying a solid foundation for long-term growth.
There is a huge demand for data centre
NVIDIA’s revenue growth is accelerating, and data centre demand is far from peaking. The accelerated revenue growth of the company reflects the surge in global customer demand for computing power. With the accelerated iteration of large models such as Sora and Gemini1.5, and the promotion of commercial applications based on large models, it indirectly confirms that the demand for computing power is expected to continue after 2024. The company’s position as a global leader in AI chips is solid, and with the development of accelerated computing and AIGC, the company is expected to continue to benefit.
