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On a day that saw the second-largest bank failure in US history, coupled with an ISM print that screamed stagflation, NVIDIA shares reached a fresh 1-year high, propelled by the ongoing mania around everything AI-related.
NVIDIA announced on Monday that its first DGX H100 systems are now being shipped to customers all around the world. As a refresher, the Hopper H100 GPU is touted as the world’s fastest data center chip. Based on TSMC’s 4nm node, the GPU delivers up to 4,000 TFLOPs of AI computing power.
Concurrently, investor hype continues to build over NVIDIA’s AI Foundation Services – a veritable suite of cloud-based offerings that enable clients to create and run customized generative AI models. Powered by NVIDIA’s AI supercomputers under the ambit of the DGX Cloud, the AI Foundation Services can be classified into three main categories: NeMo for text-based generative AI applications, Picasso for image-based AI applications, and BioNeMo for applications related to protein structure, sequencing, and molecular docking. Additionally, NVIDIA has also introduced NeMo Guardrails, an open-source toolkit that is designed to ensure security for Large Language Models (LLMs) via a range of programable constraints.
$NVDA just casually gained $31bn in market cap today… while the Nasdaq is red. That’s more “value created” in a single day in than its entire profit from the last six years combined (2017-22)!
Panic-buying of that sweet, future AI money nectar continues. 🤖
— Wasteland Capital (@ecommerceshares) May 1, 2023
This brings us to the core of today’s topic. NVIDIA shares rose 4 percent yesterday, adding around $29 billion to the company’s market capitalization.
For context, NVIDIA’s cumulative net income since 2019 only amounts to $25 billion. As an illustration, the company reported a net income of $4.141 billion in 2019, $2.796 billion in 2020, $4.332 billion in 2021, $9.752 billion in 2022, and $4.368 billion in 2023. Do note that the fourth quarter of NVIDIA’s fiscal year 2023 ended on the 29th of January, 2023. Together, this cumulative net income since the fiscal year 2019 amounts to $25.389 billion.
In contrast, NVIDIA’s market capitalization increased from $685.40 billion on the 28th of April to $714.08 billion on the 01st of May. This corresponds to an increase of $28.68 billion.
Of course, this is not the first time that NVIDIA’s meteoric stock price growth has given rise to spectacularly outlandish financial records. We noted a few days back that a 1 percent gain in NVIDIA shares added $6.71 billion to the company’s market cap. Well, today, this metric stands at $7.1 billion and rapidly approaching NVIDIA’s peak annual earnings of $9.752 billion (recorded in its fiscal year 2022).
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