Nvidia (NVDA) stock surged 9%, breaking the $1,000 mark and reaching a market cap of over $2.5 trillion after an impressive first-quarter earnings report. The company’s adjusted EPS of $6.12 on revenue of $26 billion far exceeded expectations, highlighting a remarkable 461% and 262% growth from the previous year.
In addition to the earnings beat, Nvidia announced a 10-for-1 stock split and an increased dividend, positioning itself alongside other Big Tech giants. This move could potentially lead to Nvidia’s inclusion in the Dow Jones Industrial Average.
CEO Jensen Huang attributed the growth to strong demand for generative AI across multiple sectors, including cloud services, consumer internet companies, and healthcare. Despite concerns about reliance on hyperscalers like Microsoft, Google, and Amazon, Huang assured that demand remains robust.
With the stock split effective June 7 and the new dividend payable on June 28, Nvidia continues to attract investor attention. However, challenges in the Chinese market and competition remain.
What are your thoughts on Nvidia’s growth trajectory?