$NVIDIA Corp(NVDA)$ first hit a $1 trillion market capitalisation in May 2023 and in about 9 months later it has reached a $2 trillion market capitalisation for the first time on 22 Feb 2024.
Nvidia is the third U.S. company with $2 trillion market cap after Apple and Microsoft as shown below:
On 6 Mar 2024, Nvidia’s market capitalization is at $2.217 trillion, slightly behind Apple’s $2.611 trillion.
On 21 Feb 2024, Nvidia reported their fourth quarter earnings report ended 28 Jan 2024 with the following stellar and impressive result:
1) Record quarterly revenue of $22.1 billion, up 22% from Q3, up 265% from year ago
2) Record quarterly Data Center revenue of $18.4 billion, up 27% from Q3, up 409% from year ago
3) Record full-year revenue of $60.9 billion, up 126%
Nvidia has generated exceptional returns for investors, with its share price soaring by 1,900% over the past 5 years. The sharp share price rise was due to the big increase in revenue and profit resulted from the booming demand for artificial intelligence and the advanced semiconductors in which Nvidia specializes.
On 2 Feb 2024, $Apple(AAPL)$ reported their financial results for its fiscal 2024 first quarter ended 30 Dec 2023. The company posted quarterly revenue of $119.6 billion, up 2 percent year over year, and quarterly earnings per diluted share of $2.18, up 16 percent year over year. Apple remains resilient company that still deliver robust results that justify their high market caps. However, Apple stock price keep falling in recent days due to the weak outlook for the March quarter; about 24% fewer iPhones sold in China in 2024 than in 2023; overall smartphone sales declined 7% in the period and a massive 1.8 billion Euro fine by regulators from the European Commission for violating antitrust regulations.
Despite all the above troubling news, Apple’s decision to abandon electric cars and shift resources towards generative AI is a good strategic move, hopefully it will help to bring in long-term profit for the company.
I have drawn a line chart inputting both Apple and Nvidia market capitalisation from 2 Jan 2024 to 19 Apr 2024 with forecast linear trendlines. The chart has showed that Nvidia will surpass Apple’s market capitalisation on 29 Mar 24 and 12 Apr 24. Please take note that the chart is drawn for fun without any technical basis.
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