American tech-giant Nvidia, which is riding high on the wave of the AI and semiconductor boom, has scaled another summit.
Nvidia Revenue Shoots Up 262%
According to an announcement made by the company on Nasdaq's official website, the company's yearly profits jumped by a whopping 262 per cent. The company bagged a revenue of USD 15,238 million in the first quarter of FY24, compared to just USD 2,713 million in Q1 of financial year 25.
The gross margin also jumped from 66.8 per cent in Q1 of FY24 to 78.9 per cent in the recently concluded quarter. The company generated revenue of USD 26 billion, up by 18 per cent from the previous quarter. In addition, as per reports, the company's profits also jumped by a gargantuan 628 per cent.
This bumper jump also reflected on the developments at Wall Street, as the company listed on Nasdaq rallied significantly, even crossing the USD 1000 mark.
In addition, the company also announced a 10-for-1 stock split to induce liquidity and make the shares available at a reasonable price. This would come into effect on June 7, which would see the prices of each individual stock go down to USD 95 to USD 950, increasing the existing number of outstanding shares. According to the company, this is being done to better facilitate investors and employees purchasing company shares.
In addition, the company also announced a 10 for 1 stock split to induce liquidity and make the shares available at a reasonable price. | Phtoto credit: Nvidia
The Game of Advanced Tech
The company, which once mastered the paradigm of manufacturing state-of-the-art GPUs for gaming systems, has now seen its fortunes boom further with the boom of artificial intelligence in the recent past. The advanced technology requires sophisticated machines, which resulted in Nvidia's realm expanding further and exploring more commercial avenues than what was at its disposal.
The company generated a revenue of USD 26 billion, up by 18 per cent from the previous quarter. In addition, as per reports, the company's profits also jumped by a gargantuan 628 per cent. |
The company's growth has also boosted the prospects of markets themselves, as Nvidia's surge has pushed the tech-heavy index of Nasdaq, which otherwise has had a fairly lean period.
Nvidia shares closed the day on Wednesday, May 23, at USD 949.50.
The US markets at large had a lean day, as all the major indices, including Dow Jones Industrial Average, S&P 500 and Nasdaq ended the day in red. Nasdaq, closed the day's proceedings with a 0.18 per cent decline at 16,801.54. Dow Jones ended the day with a 0.51 per cent drop, closing at 39,671.04. Meanwhile, S&P 500 ended the day at 5,307.0, slipping 0.27 per cent.
