Nvidia surpassed $2 trillion in market cap during intraday trading on Friday following the release of its rosy earnings report earlier this week.
Short-Lived $2 Trillion Milestone of Nvidia
According to CNBC, this milestone was short-lived. Despite the initial increase, Nvidia's shares closed up less than 1% on Friday, ending at $788.17 per share. The stock had seen a significant rise of 16% on Thursday.
Nvidia reported a remarkable revenue of $22.10 billion for its fiscal fourth quarter on Wednesday, marking a substantial 265% increase compared to the previous year and surpassing analysts' expectations.
Additionally, the company's net income for the quarter surged by 769% to $12.29 billion, reflecting its strong performance.
Surge in Revenue of Nvidia
The surge in Nvidia's revenue can be attributed to the high demand for artificial intelligence capabilities within the tech sector, which has significantly benefited the company over the past year.
Nvidia specializes in producing high-end graphics processors used in servers to power large-scale AI models. The company expects sales of $24 billion in the current quarter, exceeding the analysts' expectations of $22.17 billion.
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