Nvidia's stock market value surpasses $3 trillion

by Sanchita Jagtap / 06-06-2024 / comments
Nvidia's stock market value surpasses $3 trillion

Nvidia's stock price has more than doubled this year, continuing its impressive performance from 2023 when it more than tripled. This surge has propelled Nvidia to become the third most valuable company in the S&P 500, with its market value surpassing $3 trillion on Wednesday. Earlier this year, Nvidia overtook Amazon and Alphabet in market value, positioning itself just behind Microsoft ($3.168 trillion) and Apple ($3.029 trillion). This is a significant rise from its valuation of around $418 billion two years ago.

On Wednesday alone, Nvidia saw a substantial increase in its market value. The company's 10-for-1 stock split is set to take effect at the close of trading on Friday, June 7, available to all shareholders of record as of Thursday, June 6. This stock split will provide investors with nine additional shares for every share they own, a common strategy to make shares more affordable.

Nvidia’s stock closed Wednesday at $1,224.40, making it one of only 11 companies in the S&P 500 with a share price over $1,000. In its most recent fiscal quarter, Nvidia reported revenue exceeding $21.4 billion, more than triple the $7.2 billion from the same period last year. Wall Street projects Nvidia's revenue to reach $117 billion in fiscal 2025, nearly double its expected revenue for 2024 and over four times that of the previous year.

Nvidia’s estimated net margin is 53%, meaning 53 cents of every dollar in revenue became profit last year. In comparison, Apple’s net margin was 26.3% and Microsoft’s was 36.4%, though both companies have higher overall revenues than Nvidia.

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