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The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs

The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs

Edited by: Du Yu

On the evening of February 22, investors all over the world set their sights on the global chip giant - NVIDIA. After the U.S. stock market opened, Nvidia's share price soared 15%, and as of the close of local time on February 22, Nvidia was at $785.38, up 16.4%, with a market value of nearly $2 trillion, the third highest after Microsoft and Apple. Its market value increased by 273.3 billion US dollars (about 2 trillion yuan) overnight. It's the equivalent of adding an entire Netflix or an entire Adobe, or close to half a JPMorgan Chase or two Goldman Sachs!

The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs

Nvidia's fourth-quarter 2023 financial report shows that Nvidia released its fourth-quarter 2023 earnings report, Nvidia's fourth-quarter revenue was $22.1 billion, analysts expected $20.41 billion, data center revenue was $18.4 billion, analysts expected $17.21 billion, automotive business revenue was $281 million, analysts expected $272.1 million, gaming business revenue was $2.9 billion, analysts expected $2.72 billion, and adjusted profit margin in the fourth quarter was 76.7% , analysts expected 75.4%, and expected revenue of $24 billion in the first quarter of 2024, plus or minus 2%, compared to analysts' expectations of $21.9 billion. 

According to the Shanghai Securities News, Nvidia said that generative AI has hit a "tipping point". "Accelerated computing and generative AI have reached a tipping point, with surging demand from companies, industries, and countries around the world. "Our data center platform is driven by increasingly diverse drivers, whether it's data processing, training and inference needs from large cloud service providers and specialized GPU providers, or from enterprise software and consumer internet companies, with verticals led by automotive, financial services and healthcare, which are now in the billions of dollars." ” 

Huang believes that behind strong AI application scenarios, including Sora, the upgrading of industry hardware is still in its early stages. He predicts that the entire industry will need about $2 trillion in Nvidia chips in the future to meet future computing power needs. 

According to China Fund News, analysts pointed out that Nvidia's share price has risen sharply, boosted by the artificial intelligence boom and repeated better-than-expected results, which has also made some investors worry that the stock has become too expensive. But in reality, Nvidia's earnings are growing even faster than its share price, which means the stock still looks cheap. 

The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs

Image source: Nvidia official WeChat

With this resurgence on the verge of a new breakthrough, Huang is on the verge of becoming one of the 20 richest people in the world. Huang's net worth jumped $8.5 billion Thursday to $68.1 billion. The change would see him move up to No. 21 on the Bloomberg Billionaires Index, surpassing Charles Koch and Chinese drinking water tycoon Chung. This is a remarkable boost for the co-founder of Nvidia, who was only ranked 128th with a net worth of $13.5 billion at the beginning of last year. 

Nvidia's surge also drove the U.S. stock index to rise. 

On February 22, local time, the three major U.S. stock indexes collectively closed higher, with the Nasdaq rising 460.75 points, or 2.96%, approaching a record high, closing high since November 2021, the Dow rose 1.18%, and the S&P 500 rose 2.11%, both hitting record highs. 

The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs
The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs
The market value of the global chip giant soared by about 2 trillion yuan overnight, which is equivalent to a Netflix and two Goldman Sachs! Huang Jenxun stood at the door of the world's 20 richest clubs

Popular technology stocks rose, semiconductors, blockchain, and robotics sectors rose first, with ultra-micro computers up more than 32%, AMD up more than 10%, Broadcom up more than 6%, Meta up nearly 4%, Amazon up more than 3%, and Microsoft up more than 2%. Biomedicine, cruise tourism, and social media sectors all rose, with Novavax Pharma up more than 22%, Moderna up more than 13%, Airbnb up more than 4%, Eli Lilly and Carnival Cruises up more than 3%, gold stocks and solar stocks fell, Newman Mining fell more than 7%, Jintian fell more than 5%, and Pan American Silver fell more than 2% 

The National Business Daily integrates China Securities Journal, China Fund News, and market public information

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