Nvidia shares rose above $1,000 in extended trading on Wednesday after the chipmaker reported its first-quarter earnings, beating Wall Street expectations.
For the quarter ended April 28, Nvidia reported revenue of $26.04 billion, easily exceeding expectations of $24.65 billion, and a staggering 262% year-over-year increase.
The company’s robust performance highlights continued strong demand for its AI chips, placing it among the global leaders in AI technologies.
Nvidia shares soar after earnings call
Despite being the first company to reach a market cap of $3 trillion, Apple has now fallen to second place with a market cap of just $2.87 trillion, leaving room for Microsoft, which now stands at $3.17 trillion.
After flirting its way into the top 10 and then into the top 5, Nvidia’s market cap reached $1.21 trillion at the beginning of this year. Today that stands at $2.55 trillion, putting it just a few steps behind Apple and putting it in good stead to overtake the Cupertino giant.
Nvidia co-founder and CEO Jensen Huang commented on the Californian company’s performance: “The next industrial revolution has begun – companies and countries are partnering with NVIDIA to shift trillions of dollars’ worth of traditional data centers to accelerated computing and building a new type of data center. – AI factories – to produce a new product: artificial intelligence.”
The company also announced a ten-for-one stock split, effective June 7, to make shares more accessible to employees and investors.
One of the highlights was data center revenue, which rose 427% year over year to $22.6 billion.
Despite having some in-house chips, Nvidia’s components were in high demand by rival tech giants like Google, Microsoft, Meta, Amazon and OpenAI, fueling the ongoing AI boom.
With record revenues and a strategic focus on AI developments, Nvidia’s future looks strong. Huang added, “We are ready for our next wave of growth,” signaling the company’s trajectory to overtake Apple, and ultimately Microsoft, to become the most valuable company in the world.