NVIDIA Corporation (NVDA) has seen its market capitalization surpass $4 trillion, driven by robust demand for its AI hardware and chips. The company is also planning a significant expansion of its operations in Israel to meet increasing demand for AI data centers.
NVIDIA's market capitalization reached $4.01 trillion, setting a new valuation record. The company's shares rose to an all-time high of $164 due to strong demand for artificial intelligence technologies. Achieving a $1 trillion market value in June 2023, NVIDIA tripled this valuation within approximately one year. NVIDIA’s valuation has increased eightfold since 2021, spurred by investor enthusiasm for artificial intelligence. NVIDIA briefly exceeded a $4 trillion market cap, surpassing previous records.
NVIDIA is expanding its operations in Israel to address the growing need for AI data centers. The company has issued a request for information (RFI) to acquire land for a new campus near its current facility in northern Israel. Industry sources estimate this investment will involve billions of dollars and create thousands of jobs. NVIDIA has received numerous offers for potential sites to support its planned expansion and has set a deadline of July 23 for these offers. According to a source, NVIDIA's acquisition of Mellanox in 2020 has nearly tripled the company's size in Israel, contributing $13 billion in revenue to NVIDIA last year.
In financial news, NVIDIA reported total revenue of $44.1 billion in the first quarter, a 69% year-over-year increase, with a profit of 81 cents per share. The company expects second-quarter revenue of $45 billion, plus or minus 2%, with results to be reported on August 27. NVIDIA holds a 7.3% weight on the S&P 500 index. NVIDIA's stock trades at a 12-month forward price-to-earnings ratio of 32, below its three-year average of 37.
NVIDIA stated that export restrictions on its H20 chips for China are expected to result in $8 billion in lost sales. Analysts at Wedbush anticipate Microsoft will reach a $4 trillion market cap this summer, with focus shifting to a $5 trillion valuation for both Microsoft and Nvidia.