Breaking through $2.8 trillion, Nvidia continued to soar, and Huang Jenxun won

Kanjian Finance

2024-05-30 10:18Published in Guangdong financial field creators

Nvidia's unbeatable ride has driven the Nasdaq to a record high.

On May 28, local time, NVIDIA's share price exceeded $1,100, and its market value rose by $182.8 billion, or about RMB 1,324.4 billion, overnight, with a total market value of more than $2,800 billion. With the blessing of NVIDIA, the Nasdaq broke through 17,000 points and hit a new all-time high.

In fact, since the beginning of this year, the question of whether Nvidia has a bubble has been a focus of market debate, and judging from the development of the past outlet, it seems a bit too early to discuss the high valuation.

Previously, Nvidia announced its financial report for the first quarter of fiscal year 2025 as of April 28, which showed that the company's revenue in the quarter was $26.044 billion, a year-on-year increase of 262%; Net profit was US$14.881 billion, a year-on-year increase of 628%. With the blessing of this financial report that far exceeded expectations, Nvidia's stock price broke through and hit a record high.

After the release of the financial report, Nvidia also announced a "1-for-10" stock split plan. It is reported that this plan will officially take effect on June 7.

As another major global outlet after new energy vehicles, AI has begun to develop from the basic application level to a deeper level, and with the more mature large-scale model entrepreneurship, there will be more and more players entering the game, and NVIDIA, as a company that "sells shovels", will naturally become the biggest beneficiary.

It is not difficult to see from NVIDIA's quarterly report that NVIDIA's various financial indicators have broken the ceiling of external forecasts, taking gross profit margin as an example, its gross profit margin in the first quarter of last year was 64.6%, and 76% in the fourth quarter of last year, after the market was worried that NVIDIA's high gross profit margin could not be maintained for a long time, but in the first quarter of this year, NVIDIA's gross profit margin reached a new high, reaching 78.4%. This surge has also eliminated the market's concerns.

At the same time, Nvidia is also optimistic about its forecast for the next fiscal quarter, and the company expects revenue to reach $28 billion in the second quarter.

Nvidia CEO Jensen Huang is even more optimistic: "We are ready for the next wave of growth. ”

It is also worth noting that Musk also directly contributed to Nvidia's rise.

According to media reports, after Musk's AI start-up xAI successfully raised $6 billion in funding, Musk plans to connect Nvidia's H100 graphics processor cluster to build an xAI supercomputer, which is expected to connect four times the chipset of today's largest GPU cluster. To train its next version of Grok, xAI expects to need up to 100,000 GPUs and plans to string these chips together into a supercomputer, or "computing gigafactory."

Benefiting from the sharp rise in Nvidia's stock price, Huang's worth has also hit a record high. As of May 24, Huang's net worth reached $91.3 billion, making him the 17th richest person in the world.

Some institutions predict that Huang Jenxun is expected to surpass Musk in value and become the new richest man in the world by 2025.

Kanjian Finance believes that the rapid development of artificial intelligence seems to have been unstoppable, as the biggest outlet in recent years, Apple, Google, Microsoft, Amazon and other giants are vying to enter the game, and the competition between them is good for NVIDIA.

According to Nvidia's management, there are currently about 15,000 to 20,000 cross-domain generative AI startups waiting to become Nvidia customers. In recent months, it has partnered with more than 100 companies that are building new data centers, with GPU requirements ranging from hundreds to tens of thousands, and some as even 100,000.

Therefore, from the above point of view, we believe that it is too early to talk about whether there is a bubble in Nvidia, and with the advancement of the outlet, more and more players will enter the game, and Nvidia's performance is bound to grow explosively, and Nvidia's market value will most likely surpass Microsoft and become the world's largest company by market capitalization.

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