On Thursday local time, stimulated by the latest financial report that exceeded expectations, Nvidia's stock price soared by 16.4%, and its market value surged by $277 billion (approximately RMB 1992.9 billion) in a single day, setting the largest daily market value increase in US stock history. As a reference, the current market value of Netflix is approximately $254.6 billion.
As of the close, Nvidia's stock price closed at $785.38 per share, with a total market value approaching $2 trillion, ranking third in the US stock market. Previously, Nvidia released its fourth quarter financial report, with revenue and net profit skyrocketing year-on-year. During the reporting period, it achieved a revenue of 22.103 billion US dollars, a year-on-year increase of 265%, far exceeding the expected 20.37 billion US dollars; Net profit of 12.285 billion US dollars, a year-on-year increase of 769%; Non GAAP diluted earnings per share were $5.16, a year-on-year increase of 486%, higher than the expected $5.
NVIDIA founder and CEO Huang Renxun said at the financial report conference, "Accelerating computing and generative artificial intelligence have reached the tipping point. Demand from companies, industries, and countries around the world is soaring."
James Demmert, Chief Investment Officer of Main Street Research, said that some investors are afraid to buy Nvidia's stock because they believe it is too expensive. But this is a huge mistake. After each financial report is released, the P/E ratio of the stock will decrease because the denominator is much higher than expected.
Currently, multiple institutions have announced an increase in Nvidia's target price. Morgan Stanley raised its target price from $750 to $795, HSBC raised Nvidia's target price from $835 to $880, Citigroup raised its target price from $575 to $820, and Bernstein raised its target price from $700 to $1000.
In addition, the soaring market value of NVIDIA has also boosted Huang Renxun's wealth. According to data, Huang Renxun's net assets rose by $8.5 billion on Thursday, reaching $68.1 billion, surpassing Charles Koch and Zhong Gui, and rising to 21st place in the Bloomberg Billionaires Index. At the beginning of last year, he only ranked 128th with a net asset of 13.5 billion US dollars.