Why did Nvidia got such a boom on stock market?
Behind the curtain
First things first, we must mention that Nvidia is well known for its supremacy in graphic card processors manufacturing sharing the supremacy with AMD. Not to be confused with GPU, the whole graphic card, which is designed and manufactured by a whole chain of suppliers and trusted parteners.
Stock market
As widely known, Nvidia acquired supremacy as most valuable company taking over Microsoft as shown on eighteenth June on New York Times which is a huge success. On stockanalysis.com there is a clear evidence on the revenue of the company which in 2024 turned out to be $60.92 billion, almost x6 times bigger than the income from 2019 — $10.92 billion, but everything happened steadily and not sudden until May 2023. The second half on the year 2023. This swirling span of time full of ups and downs, or ‘spikes’ in financial terms is the moment when Nvidia is called leading investor in AI companies, which was the turnover moment of the transition from chip manufacturer to AI creator as main money stream.
that money boom
On the stock market we can obviously see on finance.yahoo(https://finance.yahoo.com/quote/NVDA/) how the second half of 2023 the stock price came to a clear standstill with opening and closing prices between $39 and $50, a very neat and compact price range. Exactly in the same time from an internal report it was transmitted than Nvidia had invested in ‘more than two dozen’ AI companies that year.
revenue put on labels
To cut long story short we have this interesting chart on visualcapitalist.com that tells us:
2019:
- Analytics and AI — 25.0% revenue
- GPU for Computers, 3D visualization, automotive, cryptocurrency — 74.9% revenue
So in 2019, the GPU-based revenue was $8,775 million, from a total revenue of $11,716 million and AI-based revenue only $2,929 million.
2024:
- Analytics and AI — 78% revenue
- GPU for Computers, 3D visualization, automotive, cryptocurrency — 21.5% revenue
So in 2024, the GPU-based revenue was only $13,098 million, from a total revenue of $60,922 million and AI-based revenue $47,519 million.
Future plans
Elon Musk came out as Tesla CEO(we all know he can speak as several stuff’s CEO) and announced between $3 and $4 billion investment in Nvidia’s hardware. Also, the global run after AI specialized hardware might come in handy for Nvidia and increase the revenue even more times than it already did, in a geometrically progression.
