As of the closing of the markets on March 4, 2024, NVIDIA's stock price rose by 3.6%, reaching a total market value of $2.13 trillion, surpassing Saudi Aramco and becoming the third-largest company in the world, after Microsoft and Apple.
This news is remarkable because Saudi Aramco is an oil company, and NVIDIA's surpassing seems to validate the claim that "chips are overtaking oil as the most valuable commodity."
The positive momentum in the AI industry has propelled the rapid growth of NVIDIA and AMD. The advancement of generative AI models such as ChatGPT and Sora has driven the skyrocketing demand for AI chipsets, leading to substantial increases in revenue and market value for these companies.
NVIDIA's stock price had already more than doubled in 2023, and its market value surpassed both Amazon and Google, making it the third-largest company in the US stock market and the fourth-largest globally. According to media reports from February, NVIDIA's stock price had already risen by over 60%. Now, NVIDIA's stock price and market value have further increased, solidifying its position as the third-largest company globally.
NVIDIA's latest financial report reveals that its fourth-quarter revenue reached $22.1 billion, a year-on-year increase of 265%. Its full-year revenue for fiscal year 2024 reached $609.22 billion, a year-on-year growth of 126%. In the fourth quarter, NVIDIA's data center business revenue reached $18.4 billion, a staggering increase of 409%. NVIDIA attributes the significant growth in its data center business to the increased shipments of the NVIDIA Hopper GPUs used for training and inference in large language models and generative AI applications.
Another AI chipset manufacturer, AMD, has also achieved noteworthy performance.
On February 29, AMD's stock price surged by 9.06%, closing at $192.53, reaching a new all-time high. This milestone propelled AMD's market value beyond $300 billion, reaching $311.088 billion. Industry experts note that five years ago, AMD ranked 222nd in the S&P 500 index, but now, driven by AI, the company has climbed to the 22nd spot. As of the closing on March 4, AMD's market value reached $331.8 billion.
According to AMD's latest financial report, the company's revenue for the fourth quarter of the previous year reached $61.68 billion, a year-on-year increase of 10%. Its data center business segment revenue reached $22.82 billion, a year-on-year growth of 38%. AMD attributes this growth primarily to increased shipments of its fourth-generation EPYC processors for data centers and its Instinct GPUs for AI and high-performance computing applications.
These achievements indicate that the AI chipset industry is experiencing significant opportunities and development potential. The advancement of AI technology is expected to continue driving sustained growth for the relevant companies.
