On the evening of February 22nd, investors around the world turned their attention to the global chip giant NVIDIA. After the opening of the US stock market, Nvidia's stock price surged by 15%. As of the close on February 22 local time, Nvidia closed at $785.38, up 16.4%, with a market value approaching $2 trillion, the third highest after Microsoft and Apple. Its market value increased overnight by $273.3 billion (approximately RMB 2 trillion). Equivalent to adding an entire Netflix or an entire Adobe, or close to half JPMorgan Chase or two Goldman Sachs!
Nvidia's Q4 2023 financial report shows that Nvidia has released its Q4 2023 financial report, with a revenue of $22.1 billion and analysts expecting $20.41 billion; Data center revenue is 18.4 billion US dollars, with analysts expecting 17.21 billion US dollars; The automotive business revenue is 281 million US dollars, with analysts expecting 272.1 million US dollars; Game business revenue of 2.9 billion US dollars, with analysts expecting 2.72 billion US dollars; The adjusted profit margin for the fourth quarter was 76.7%, with analysts expecting 75.4%; It is expected that the revenue for the first quarter of 2024 will be $24 billion, up and down no more than 2%, and analysts expect it to be $21.9 billion.
According to Shanghai Securities News, Nvidia stated that generative artificial intelligence has reached the "tipping point". "Accelerating computing and generative AI have reached their tipping point, and the demand for companies, industries, and countries around the world is skyrocketing," said Huang Renxun, founder and CEO of Nvidia, during a conference call, "Our data center platform is driven by more and more diversified drivers. Whether it is the demand for data processing, training and reasoning from large cloud service providers and specialized GPU providers, or the demand from enterprise software and consumer Internet companies, the vertical industry led by automobile, financial services and healthcare has now reached the scale of billions of dollars."
Huang Renxun believes that behind the strong artificial intelligence application scenarios, including Sora, the upgrading and replacement of industry hardware is still in the early stages. He predicts that the entire industry will require approximately $2 trillion in Nvidia chips to meet future computing power needs.
According to China Fund News, analysts have pointed out that Nvidia's stock price has risen significantly due to the boom in artificial intelligence and repeatedly exceeding expected performance, which has also made some investors worry that the stock has become too expensive. But in reality, Nvidia's profit growth rate has even exceeded the growth rate of its stock price, which means the stock still looks cheap.
This resurgence of market trends is about to lead Huang Renxun to a new breakthrough: becoming one of the top 20 wealthiest people in the world. Huang Renxun's wealth jumped $8.5 billion to $68.1 billion on Thursday. This change will propel him beyond Charles Koch and Chinese drinking water tycoon Zhong Gui to 21st place on the Bloomberg Billionaires Index. For the co founders of Nvidia, this is a remarkable improvement as he only ranked 128th with a net asset of $13.5 billion at the beginning of last year.
Nvidia's surge has also driven the US stock index to soar.
On February 22nd local time, the three major US stock indexes collectively closed higher, with the Nasdaq up 460.75 points, or 2.96%, approaching a historical high, reaching a new closing high since November 2021. The Dow Jones Industrial Average rose 1.18%, and the S&P 500 Index rose 2.11%, both reaching historic highs.
Popular technology stocks rose generally, with semiconductor, blockchain, and robotics sectors leading the way. Microelectronics rose more than 32%, AMD rose more than 10%, Broadcom rose more than 6%, Meta rose nearly 4%, Amazon rose more than 3%, and Microsoft rose more than 2%. The biopharmaceutical, cruise tourism, and social media sectors all rose. Novartis Pharmaceuticals rose more than 22%, Moderna rose more than 13%, Airbnb rose more than 4%, Lilly and Carnival cruise ships rose more than 3%, gold and solar stocks fell, Newman Mining fell more than 7%, Gold Fields fell more than 5%, and Pan American Silver fell more than 2%
Daily Economic News Comprehensive China Securities News, China Fund News, and publicly available market information
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