Global AI chip leader Nvidia saw its stock price surge by 16.40% on Thursday, reaching a new all-time high and pushing its market value close to $2 trillion. This also led to a global stock market rally, and Huang Renxun, the CEO of Nvidia, became the 21st richest person in the world.
In its fourth-quarter financial report for 2023, Nvidia revealed that its revenue increased by 265% year-on-year to $22.1 billion, far surpassing market expectations. Its net profit reached $12.29 billion, a 769% surge from the same quarter of the previous year, which was $1.41 billion.
Nvidia even predicted that its first-quarter revenue for this year would reach $24 billion, higher than the market expectation of $22 billion. This means that Nvidia’s Q1 revenue is expected to more than double from the same quarter of the previous year, indicating that the AI boom continues unabated.
Boosted by this news, Nvidia’s stock price soared by $110.66 or 16.40% on Thursday, closing at $785.38, another all-time high. Its market value increased by approximately $277 billion in a single day, reaching a total market value of $1.9635 trillion, firmly establishing itself as the third-largest company in the US stock market.
Source: Yahoo Finance
With the surge in Nvidia’s stock price, the US stock market rallied on Thursday. The Dow Jones Industrial Average closed above 39,000 points for the first time, while the S&P 500 index had its best single-day performance in 13 months, and the Nasdaq index achieved its best performance since February last year, nearing the historical high set in November 2021:
– The Dow Jones Industrial Average rose by 456.87 points or 1.18%, closing at 39,069.11 points.
– The Nasdaq index rose by 460.75 points or 2.96%, closing at 16,041.62 points.
– The S&P 500 index rose by 105.23 points or 2.11%, closing at 5,087.03 points.
– The Philadelphia Semiconductor Index rose by 221.01 points or 4.97%, closing at 4,667.37 points.
Source: finviz
Furthermore, Nvidia’s impressive financial report also led to record highs in global stock markets:
– The European Stoxx 600 index rose by 0.8% to 495.1 points, reaching a historical high.
– The Nikkei index surged by 2.2% in yesterday’s closing, closing at 39,098.68 points, breaking the historical record set in 1989. It continued to rise by over 2% in today’s trading.
– The Taiwan stock market also briefly surpassed 19,000 points, setting a new all-time high.
Huang Renxun believes that AI development has reached a tipping point. With the surge in Nvidia’s stock price, his personal wealth increased by $9.6 billion in a single day, reaching $69.2 billion, making him the 21st richest person in the world, surpassing Charles Koch, the founder of Koch Industries, and Chinese bottled water tycoon Zhong Shanshan.
Looking ahead, Huang Renxun expressed during the financial conference on the 21st that the overall environment is excellent, and operations are expected to continue growing beyond 2025. The demand for Nvidia’s GPUs remains strong, driven by the rise of generative AI and the industry’s transition from CPUs to Nvidia’s accelerators.
Joseph Moore, an analyst at Morgan Stanley, stated that Nvidia’s financial report exceeded investors’ expectations. A few quarters ago, it was unprecedented for Nvidia to have a single-quarter revenue growth expectation of over $2 billion. However, during the AI boom, this has become the norm, and the demand for AI remains strong.
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