Nvidia could soon surpass Apple to become the world’s second-most valuable company, as the biggest beneficiary of the surge in adoption of AI applications takes on the iPhone maker that has been the largest Wall Street firm by market value for years. The chip maker could overtake Apple to assume the position, behind No. 1 ranked Microsoft, Reuters reported Friday (May 31).
The company’s earnings, reported May 22, showcased the ongoing strength of the AI boom, with its revenue reaching $26 billion, up 18% from the previous quarter and 262% from the same period last year. Its sales and profit exceeded Wall Street expectations.
Nvidia could soon surpass Apple to become the world’s second-most valuable company, as the biggest beneficiary of the surge in adoption of AI applications takes on the iPhone maker that has been the largest Wall Street firm by market value for years.
Nvidia is also popular in the derivatives market. GraniteShares 2x Long NVDA Daily ETF, which tracks twice the daily percentage change in Nvidia, is the largest single stock ETF.
“It is certainly notable because Apple has been so dominant for so long, especially on the growth and innovation front. Recently though, Apple’s innovation curve seems to have flattened, showing slower future growth,” said Brian Mulberry, client portfolio manager at Zacks Investment Management.
Fueled by the demand for generative AI training and inference across various industries, the revenue of Nvidia’s Data Center business unit rose 23% from the previous quarter and 427% from the same quarter in 2023.
Nvidia founder and CEO Jensen Huang said during the company’s May 22 earnings call: “Generative AI is driving a from-foundation-up full-stack computing platform shift that will transform every computer interaction. From today’s information retrieval model, we are shifting to an answers and skills generation model of computing.
Nvidia is also popular in the derivatives market. “On the other hand, Nvidia has been able to catch wave upon wave of growth. Beginning with gaming demand, then crypto and now AI, they have been able to perfectly match innovation with demand and that equals explosive growth.”
Since its blowout forecast about a year ago, the company has consistently breezed past Wall Street’s lofty expectations for revenue and profit, with demand for its graphic processors far outstripping supply as Big Tech rushes to embed AI applications.Thursday marked the fifth straight session where more than a million Nvidia call options changed hands, the longest such streak in the stock’s history, according to a Reuters analysis of Trade Alert data.
image source : https://www.nvidia.com/en-au/about-nvidia/legal-info/logo-brand-usage/
Hi, This is Scoopearth’s admin profile. Scoopearth is a well-known Digital Media Platform. We share Very Authentic and Meaningful information based on Real facts and Verification related to start-ups, technology, Digital Marketing, Business and Finance.
Note: You can reach us at support@scoopearth.com with any further queries.
Linkedin Page : https://www.linkedin.com/company/scoopearth-com/
Disclaimer -We have collected this information from our direct sources, various trustworthy sources on the internet and the facts have been checked manually and verified by our in-house team.