November 20, 2024 - Nvidia has emerged as a dominant player in the AI sector, achieving a market capitalization of nearly $3.5 trillion, surpassing Apple and Microsoft. The company’s stock has surged by 183% this year alone, marking a staggering 810% increase over the past two years.
In the last quarter, Nvidia reported a net income of $16.6 billion, a 168% increase year-over-year, exceeding analyst expectations. Revenues surpassed $30 billion, more than double from the previous year.
Nvidia's operating margin remains impressive, with over half of its sales translating into net profit. However, its valuation raises concerns, as the company is priced at over 65 times its earnings from the last four quarters.
Looking ahead, Nvidia anticipates revenues of $32.5 billion for the next quarter, while analysts project $33.2 billion. The data center sector is expected to generate $29 billion in sales, doubling from the previous year.
Investors are closely monitoring Nvidia's upcoming announcements regarding the next generation of Blackwell processors, which are crucial for AI applications. The company faces potential risks from trade tariffs, particularly if proposed measures by President-elect Donald Trump are implemented, affecting its chip production in Taiwan.