It is the ninth company in Wall Street history to exceed $1 trillion in value on the stock market and the fifth to maintain it today. Nvidia’s shares shot up more than 5% on the Nasdaq this Tuesday, raising the manufacturer of microprocessors and graphics cards above that billion-dollar psychological barrier that is equivalent to the value of the entire Spanish Stock Market.
Only a handful of nine companies worldwide have ever managed to be worth more than $1 trillion, seven of them are from the US. These are the car manufacturer Tesla Motors, the social networking company Meta, the phone and computer manufacturer Apple, the software technology and search engines Alphabet, the creator of Windows (Microsoft) or the e-commerce giant Amazon.
Outside of Wall Street, the Saudi oil company Aramco or the Chinese Petrochina, in 2007, have also reached that giant height. Right now, Aramco, Apple, Microsoft, Alphabet, Amazon, and Nvidia alone are worth over $1 trillion.
Nvidia’s titles accumulate a revaluation of 190% so far this year, including a climb of more than 36% since the company presented its first quarter accounts last week and, above all, improved its expectations by 50% revenue for the second quarter (April-June), thanks to the boost of Artificial Intelligence for the chip sector.
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In the heat of the AI boom
Specifically, Nvidia had an advance of 26.3% in net profit between February and April, up to 2,043 million dollars (1,906 million euros), while its sales totaled 7,192 million dollars (6,709 million euros), a 13 .2% less than a year earlier.
Facing its second fiscal quarter, the company appeared on the market by announcing that it expects to reach revenues of 11,000 million dollars (10,261 million euros), with an upward or downward margin of 2%, which represents 50% more. than expected by the consensus of analysts.
Despite the euphoria among experts, Nvidia’s stock valuation is the most demanding of all large listed companies because it is trading at exorbitant multiples that are supported by accelerated growth in the coming years. Nvidia is trading at more than 20 times its expected sales in 2023.
No other company embodies Wall Street’s current obsession with AI better than Nvidia. It has become the world’s largest maker of the specialized chips needed to power a new generation of AI products, outpacing Advanced Micro Devices (AMD) and Intel just as the success of OpenAi (ChatGPT) alongside Microsoft has made that virtually every company in the world has incorporated AI into its operations.
