Already the world’s third-most valuable firm, Nvidia’s market cap gain on Thursday was roughly equivalent to the full value of Adobe. Nvidia’s surge was second only to its own $277 billion jump on the day following its previous earnings report in February.
Nvidia’s market cap of $2.55 trillion is rapidly closing in on Apple, currently the second most-valuable company with a $2.87 trillion market cap. Microsoft is the world’s most valuable company with a market value of $3.17 trillion because their CEO didn’t completely miss the AI revolution.
Aditya Soni, Gokul Pisharody, and Lewis Krauskopf for Reuters:
Shares of Nvidia surged over 9% on Thursday, building on a stunning rally as its bumper revenue forecast reinforced investor confidence in the AI-driven boom in chip demand.
The semiconductor bellwether’s surge translated to an addition of around $218 billion in market value on the day, according to LSEG data, the second-largest single-day market cap gain in history on Wall Street.
The big stock move came even as expectations were high for Nvidia with its shares trading near record peaks in the run-up to earnings. The results also capped a strong quarter for U.S. technology giants, including Microsoft, with AI emerging as a major growth driver.
“Companies are continuing to increase their capital expenditures, particularly Big Tech, to keep up with this revolutionary technology, and Nvidia is by far the biggest beneficiary,” said Josh Gilbert, market analyst at eToro.
Nvidia also unveiled a 10-for-one stock split on Wednesday and lifted its quarterly dividend by 150% as demand continues to exceed supply for its high-end chips that power virtually all AI applications, including OpenAI’s ChatGPT.
CEO Jensen Huang told Reuters that he expected new AI models that are capable of creating video and engaging in human-like voice interactions to spur more orders for Nvidia’s processors.
“With competition years behind, we believe Nvidia can comfortably defend and maintain its market share,” said Ido Caspi, research analyst at Global X, which invests in Nvidia.
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MacDailyNews Take: Life comes at you fast. Too fast for Apple’s current leadership, clearly. Let’s hope Apple’s marketing team can, with their WWDC effort, buy the company some more time to continue their mad scramble to catch up to rivals in AI.
Apple was caught flat-footed, due to a lack of vision on the part of leadership… So, the only solution is to partner with a [Google, OpenAI, Baidu, etc.] for the real GenAI stuff while pretending (marketing) really hard that some on-device AI Apple has whipped up in a few months is “insanely great Apple innovation” that’s at the heart of Apple’s 2024’s AI announcements when it’s really just an adjunct… Watch Apple make a big show of its on-device AI at WWDC and run many ads touting it from June onwards.
Apple hopes to buy time for the data center buildouts and investments that will be required for them to someday own their own AI technology and not have to license it from the likes of [Google, OpenAI, Baidu, etc.]. – MacDailyNews, April 1, 2024
See also: Apple is just weeks away from unveiling its big AI marketing effort – May 20, 2024
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Nvdia’s P/E ratio is over 80%. stupid expensive
Wrong. It’s justified. Nvidia’s P/E ratio means it’s rapidly growing, with its stock price and EPS both rising. Unlike Tim Cook’s Apple.
Though it doesn’t sound great, Jason Huang (Nvidia CEO) says he constantly worries that the company will fail… “I don’t wake up proud and confident. I wake up worried and concerned”
Like Jobs, the co he founded nearly failed and Jobs being booting probably doubles the intent & focus that often comes from the failing/booted experience. This mindset would give me A LOT of confidence in Nvidia’s likelihood of success. The real uncertainty is ravenous competition, imo, with this critical and fast moving sector.
Meanwhile Cook has had no such experience as CEO, which enables him to iterate with commitment and focus on watch faces and things that fancies a fraction of the market place. Of course, being carbon neutral by 2030 fits in there too…a “luxury” focus that wouldn’t likely be there if he had Huang’s daily wake-up experience.
AMZNs p/e has been stupid expensive for quite awhile. It’s “endured.”
In the 9th?
Great. And what I’ve seen 90% of AI do is useless, except for making people more lazy. Yes, middle managers can have AI write the inane emails that they’re used to sending out themselves. Artists of all kinds have already had their entire history of content creation stolen from them for AI training. Good on ya.
That’s kind of what technology does… Enables people to be more “lazy”, so they can do other things. Each person has the option to use that time, foolishly, or not.
Sequential high market cap Microsoft first Apple, second, Nvidia third.
Apple wasn’t the first with a personal computer, they didn’t invent the graphical user interface, they came late to the party with a mobile phone. Still, they managed to significantly influence these critical spaces. It’s not unreasonable to expect the same when it comes to AI.