Nvidia Corp. has achieved a significant milestone with record-breaking profits, surpassing $29.76 billion in a fiscal year. Analysts project even higher future earnings, setting new standards in profit margin.
Nvidia Corp. has just unveiled the details of its record-breaking financial year, sparking high expectations for the chip maker's groundbreaking accomplishment.
After concluding its fiscal year with an earnings report, Nvidia saw its stock soar to new heights and drove indexes to unprecedented levels. With a market capitalization of around $2 trillion, the company's stock has surged by almost 1,900% over the past five years.
In the 2024 fiscal year, Nvidia achieved a remarkable profit of $29.76 billion, a significant milestone in its history. This figure is particularly astonishing when compared to its previous performance as a public company. Notably, Nvidia had never reached such a high annual revenue total in its 25-year history, with sales peaking at $26.97 billion the year before.
Analysis by the Dow Jones Market Data team revealed that Nvidia's achievement stands out on a grand scale. Over the past 25 years, nearly 300 companies have exceeded their previous revenue totals with higher profits. However, most of these companies were much smaller entities, generating profits of less than $1 billion in their best years.
Prior to Nvidia's groundbreaking success, Moderna Inc. held the highest profit total that exceeded any previous revenue record. Following the introduction of its COVID-19 vaccine, Moderna amassed a profit of $12.2 billion in 2021. Nevertheless, Nvidia's profit surpassed that by a significant margin. Only three other companies have surpassed the $10 billion mark in this regard: BioNTech SE in 2021, Gilead Sciences in 2014 due to Sovaldi, and Charter Communications Inc. in 2009 primarily from exiting bankruptcy.
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As Nvidia continues to push boundaries and redefine success in the tech industry, the future looks promising for the chip giant.
Nvidia’s record-breaking sales of $60.9 billion last year are expected to be surpassed this year, with analysts projecting nearly $56 billion in profits. After consistently outperforming analysts’ projections in recent quarters, Wall Street now anticipates Nvidia to exceed $100 billion in revenue, a milestone that even Intel Corp. has not achieved.
The remarkable aspect of Nvidia's performance lies in its profit margin. With expectations for the company to take home over 50 cents of every dollar collected as net income, Nvidia is on track to establish a record unmatched in the history of Dow Jones Market Data analysis. Never before has a company generated $100 billion in revenue with a net profit margin exceeding 50%, making Nvidia a potential trailblazer in this regard.
If Nvidia maintains or surpasses Wall Street’s predictions, it will become the first company ever to achieve such a historic feat. The implications of this accomplishment for the market are profound and far-reaching.
For a deeper dive into Nvidia's journey to this pivotal point and its impact on the financial landscape, tune in to this week’s episode of On Watch by podcast. Jeremy Owens dissects the factors shaping markets and offers invaluable insights to guide your financial decisions.
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