Nvidia Corporation, a leader in high-performance computing and AI hardware, has taken the stock market by storm over the past two years, with its stock soaring by more than 440%. At one point, Nvidia's market capitalization surpassed $3 trillion, making it the most valuable U.S. company. However, despite its impressive climb, Nvidia's stock has recently slipped from this peak. On Wednesday, after the market closed, the company reported its fourth-quarter earnings for the fiscal year 2024, showcasing a remarkable 114% increase in revenue from the previous year, reaching $130.5 billion.
Nvidia's graphics processing units (GPUs) play a critical role in the AI industry, serving as the backbone for training AI models, including prominent platforms such as OpenAI's ChatGPT and Google's Bard. The company's dominance in this sector has attracted investments from major tech giants like Meta, Amazon, and Alphabet, all of which have integrated Nvidia's hardware into their AI data centers. CNBC's calculations indicate that Nvidia's stock performance, which includes total returns, is based on the Feb. 26 closing share price of $131.28.
Earlier this year, Nvidia's stock experienced a sharp decline in January but has since seen a partial recovery. Despite these fluctuations, the company's long-term growth has proven lucrative for investors. For instance, a $1,000 investment made 26 years ago when Nvidia went public in 1999 would now be worth an astonishing $5,258,542. This performance is atypical for a company listed on the Nasdaq.
Nvidia's latest earnings report revealed an earnings per share of $0.89 for 2024, exceeding analysts' estimates of $0.84. The company's revenue also surpassed expectations of $38.05 billion. This financial success underscores Nvidia's position as a market leader and highlights its pivotal role in advancing AI technologies.