How Nvidia became number 1 in the S&P 500 in numbers

Nvidia’s The stock market’s stunning rise reached a new milestone on Tuesday when the chipmaker became the most valuable company in the S&P 500. Investors now believe the company is worth over $3.3 trillion.

Nvidia is seeing a sharp increase in demand for its semiconductors, which are used in artificial intelligence applications. Sales more than tripled in the last quarter compared to the same period last year.

The company’s journey to becoming one of the most significant players in artificial intelligence has produced some eye-popping numbers. Here’s a look:

3.334 trillion US dollars

Nvidia’s total market value at the close of trading on Tuesday. It overtook Microsoft ($3.317 trillion). Apple is the third most valuable company ($3.286 trillion). A year ago, the company had just crossed the $1 trillion mark.

113 billion US dollars

Nvidia’s one-day increase in market value on Tuesday.

$135.58

Nvidia’s closing price on Tuesday. Two weeks ago, the stock price was still above $1,200, but the company conducted a 10-for-1 stock split after the close of trading on June 7. This gave each investor nine additional shares for each share they already owned. Companies with a high stock price often conduct stock splits to make the shares more affordable for investors.

119.9 billion US dollars

Analyst estimates for Nvidia’s revenue for the fiscal year ending January 2025: That would be about double the revenue in fiscal year 2024 and more than four times the previous year’s revenue.

53.4%

Nvidia’s estimated net margin, or the percentage of revenue that turns into profit. Put another way, about 53 cents of every dollar of revenue Nvidia made last year went to profit. For comparison, Apple’s net margin was 26.3% last quarter and Microsoft’s was 36.4%. However, both companies have significantly higher revenues than Nvidia.

32%

How much of the S&P 500’s gain in the year through May came from Nvidia alone?

11

According to S&P Dow Jones Indices, these are the companies other than Nvidia that were once the most valuable in the S&P 500 since 1926. These include: AT&T, IBM and Walmart.