The tech giant Nvidia is stepping into the spotlight as it advances on becoming the world’s second most valuable firm, posing a threat to the reigning Apple. Presently boasting a value of $2.8 trillion (€2.6 trillion) compared to Apple’s $2.9 trillion, Nvidia’s impressive latest earnings have added a remarkable $500 billion to its market capitalisation in a mere span of three days.
This breath-taking growth overshadows its earlier spike in January, when the company posted a monthly gain of $296 billion. This surpassed its prior record of $248 billion in value increase, set just eight months before. While most businesses experience slowing growth as they expand, Nvidia is an exception. The company’s shares have skyrocketed with an 18-fold increase since 2020 when they were worth $145 billion. The shares tripled in the year 2023 and have again more than doubled in 2024 – figures which are rarely seen for a firm of its scale.
Josh Brown from Ritholtz Wealth Management, uncertain of this extraordinary growth, theorises that Nvidia could triple yet again, suggesting a worth of $10 trillion by the year 2030. Notwithstanding this, his co-worker, Michael Batnick, believes the burgeoning share price simply reflects the corresponding rise in profits. With a seven-fold increase in Nvidia’s free cash flow seen in the last year, Batnick admits the difficulty in articulating the company’s phenomenal performance. In his words, Nvidia is redefining perceived growth limitations. To put it simply, Nvidia’s ongoing evolution is nothing short of exceptional.