Can Tata and Adani give Nvidia a run for its money?
Subscribe to enjoy similar stories. “The next industrial revolution has begun." Jensen Huang, chief executive of Nvidia Corp., on the earnings call for the chipmaker’s financial second quarter ended 28 July. A glimpse of this revolution was already visible in Nvidia’s full-year earnings for 2023-24.
Its data center revenue more than tripled to $47.5 billion from $15 billion in FY23, accounting for 78% of its overall revenue of $60.92 billion. Net income surged almost sixfold to $29.76 billion. It wasn’t just the fundamentals, the technical charts also shot up. Nvidia’s stock price is trading at 98% spread on its 200-day-moving average, surpassing Cisco’s record of 80% spread on its 200-DMA in March 2000. That’s the wildest spread a US firm has reported since 1990, noted Jonathan Krinsky, chief market technician at research and broking firm BTIG. What made Nvidia a global household name is the ChatGPT-led generative AI revolution.
Its stock price has jumped 700% since the generative AI frenzy began in November 2022, propelling a company that had a market capitalisation of $350 billion in November 2022 to a $3.3 trillion valuation in June 2024. The Nasdaq Composite Index only grew 65% in this period. Nvidia beat records by selling shovels in the gold rush, and oil in the industrial revolution.
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