Nvidia has once again surpassed expectations with its latest quarterly results, showcasing a remarkable performance driven by the surging demand for its semiconductors that power artificial intelligence applications. The company reported a nearly doubled revenue in the latest quarter compared to the same period last year, with expectations of further growth in the upcoming quarter ending in January.
Investors are closely monitoring the company's next-generation AI chip, Blackwell, to sustain its impressive momentum. Nvidia's market value has soared to $3.579 trillion, making it the top company in the S&P 500, surpassing Apple and Microsoft. Just a year ago, Nvidia's market value was around $1.243 trillion, reflecting a significant 195% increase.
The company's stock price has surged by 195% this year, with a $100,000 investment in Nvidia two years ago now valued at over $950,000. Despite a slight 1% dip in after-hours trading post-earnings release, Nvidia remains a key contributor to the S&P 500's gains, accounting for 25% as of October 31.
Nvidia's revenue from its data center business for the quarter ended October 31 spiked by 112% from the previous year, contributing to an overall revenue increase of 94% to $35.1 billion. In comparison, the revenue growth for all S&P 500 companies is expected to be around 5.5% for the latest quarter.
The company's estimated overall revenue for the fourth quarter is $37.5 billion, with a slight margin of error of 2%. This projection exceeds Wall Street's estimate of $37.1 billion and significantly surpasses the $22.1 billion revenue from the same quarter last year.
Analysts predict Nvidia's revenue for the fiscal year ending in January 2025 to reach $126.5 billion, more than double the revenue for fiscal 2024 and four times higher than the previous year. To put Nvidia's market value into perspective, it could purchase approximately 54.6 billion Thanksgiving meals based on the estimated cost of a 15-item meal.
