NVIDIA Is Now Bigger Than The Capitalization Of The Entire German Stock Market, The GDPs Of Canada And Russia

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

NVIDIA delivered on elevated expectations on what was widely dubbed the AI hedgehog day - an homage to the GPU manufacturer's central importance in furthering the ongoing market-wide, AI-boosted bull run. Now, as investors digest the scale of the oncoming AI-related tailwind, NVIDIA is breaking financial records left, right, and center.

NVIDIA's Record Q1 FY2025 Earnings

$NVDA | Nvidia Q1'25 Earnings Highlights:

🔹 Adj EPS: $6.12 (Est. $5.65) 🟢
🔹 Revenue: $26.04B (Est. $24.69B) 🟢; UP +262% YoY
🔹 Adj Gross Margin: 78.9% (Est. 77%) 🟢
🔹 Free Cash Flow: $14.94B (Est. $12.29B) 🟢; UP +465% YoY
🔸 10-for-1 Stock split effective June 07

Q2 FY25…

— Wall St Engine (@wallstengine) May 22, 2024

As we noted in a dedicated post yesterday, NVIDIA reported $26 billion in revenue for the first quarter of its fiscal year 2025, translating it into $6.12 in earnings per share, managing to beat expectations on both counts. What's more, the company guided to $28.08 billion in revenue for the ongoing second quarter, again beating expectations by 2 percent.

$NVDA CFO: "While supply for H100 improved, we are still constrained on H200. At the same time, Blackwell is in full production... DEMAND for H200 and Blackwell is 'well ahead of SUPPLY', and we expect demand may exceed supply well into next year."

Additionally, the CFO…

— Wall St Engine (@wallstengine) May 22, 2024

Additionally, NVIDIA's CFO commented that the demand for the company's products is expected to exceed the supply "well into next year." The GPU maker then topped off these blowout results with the announcement of a 10-to-1 stock split that would render NVIDIA's shares much more affordable to retail option traders, where 1 contract spans 100 shares.

Financial Records Are Now Being Broken Left, Right, And Center

Nvidia $NVDA now surpasses: 🤯

1. 9x the market cap of AMD
2. Combined market cap of Amazon and Tesla
3. 4x the market cap of Tesla
4. 10x the market cap of Qualcomm
5. The market cap of Walmart and Amazon COMBINED
6. Russia's entire GDP plus $300 billion in cash
7. GDP of every… pic.twitter.com/NTXj0c6grJ

— Wall St Engine (@wallstengine) May 23, 2024

This brings us to the crux of the matter. NVIDIA's market capitalization has now swelled to 9x that of AMD, and exceeds the combined market cap of Amazon and Tesla! The company has added $220 billion to its market cap since yesterday, which exceeds the market-based valuation of Disney by over $50 billion!

NVIDIA's market cap is now bigger than the entire GDP of Canada and Russia. What's more, the GPU maker's market-based capitalization exceeds the GDP of every US state except California and Texas.

To put NVIDIA's scale into context, note that the stock is now bigger than the market capitalizations of all companies listed on the Deutsche Boerse AG!

Analyst Price Targets for Nvidia $NVDA:

— Cantor Fitzgerald: $1,400 (Street-High)
— Jefferies: $1,350
— BofA Securities: $1,350
— Benchmark: $1,350
— Evercore ISI: $1,310
— Bernstein: $1,300
— KeyBanc: $1,300
— Citigroup: $1,260
— Wells Fargo: $1,250
— Wolfe Research: $1,250
—… https://t.co/8cOggCJW7Q

— Wall St Engine (@wallstengine) May 23, 2024

It is hardly surprising, therefore, that NVIDIA has received a slew of upgrades today from Wall Street analysts.

So every company in the S&P 500 will blow massive capex on stuff from $NVDA and have no profits to show for it, while $NVDA mints money....

So $NVDA UP
Everything else: DOWN

Makes sense!

— Stanphyl Capital (@StanphylCap) May 23, 2024

Yet, skepticism around the AI tailwind still persists.

Follow Wccftech on Google to get more of our news coverage in your feeds.