The world's largest company is born! The market value exceeds 24 trillion yuan, which is equivalent to 18 Alibaba

There are many financial stories

2024-06-19 14:59Published in Guangdong

In the past two years, the stock markets of China and the United States can be said to be two heavens of ice and fire, A-shares have been fighting a 3,000-point defense war, but the U.S. stock market has risen round after round, constantly hitting new highs. Technology stocks, in particular, continue to set new historical records.

During this time, Moutai, the king of the A-share market capitalization, fell into the confusion of product value investment, and its stock price plummeted, and its market value fell below 2 trillion yuan. However, in the U.S. stock market, the Nasdaq and the S&P 500 index continued to hit record highs, and the Nasdaq index continued to hit new closing highs for seven consecutive trading days.

On June 18, American technology companies made history again, with the share price of artificial intelligence chip giant Nvidia rising 3.51% to a market capitalization of $3.34 trillion, surpassing Apple and Microsoft to become the world's most valuable company.

What is the concept of $3.34 trillion? It is equivalent to the UK's GDP in 2023, which means that Nvidia's market capitalization can rank sixth in the world.

In addition, it exceeds the total market capitalization of the London Stock Exchange and ranks sixth in the world, and a single company kills the market value of all listed companies on a stock exchange.

What about in China? 3.34 trillion US dollars, equivalent to 24.2 trillion yuan. The largest company in China by market value is Tencent, with a market value of about 3.36 trillion yuan, and Nvidia is equal to 7 Tencent, which is almost equivalent to 13 Moutai and 18 Alibaba. The market capitalization of one company of Nvidia is higher than the combined market capitalization of the top 10 companies in China.

In fact, starting in 2023, Nvidia has become a popular fried chicken in the global capital market. A year ago, on June 13, Nvidia's market capitalization exceeded $1 trillion, and on June 5 this year, Nvidia's market capitalization exceeded the $3 trillion mark. In other words, it took Nvidia less than a year to skyrocket its market value by $2 trillion, which is really terrifying.

Compared with Intel, Qualcomm and other American chip companies that have already made a name for themselves in China, NVIDIA has only been known to most Chinese people in the past two years.

In the history of NVIDIA's development, it can be said that it has seized the limelight every time. Founded in 1993, it focuses on graphics chip design business. But at the time, it was a small market, and there was a lot of competition. So in 1996, Nvidia had to lay off half of its employees and almost went bankrupt.

But I didn't expect the game market to explode and bring life to NVIDIA. In 1999, the world's first GPU was launched, which was a great success, and successively reached cooperation with Microsoft, Sony and other world game giants.

With the advent of the era of autonomous driving, NVIDIA has released NVIDIA DRIVE, which supports advanced driver assistance systems, and has fully entered the field of autonomous vehicles.

Of course, the rapid rise in the past two years is mainly due to the wave of generative AI set off by Open AI. Nvidia GPUs excel in AI training and inference tasks, dominating the market. The high demand in the market has pushed up NVIDIA's performance.

In 2015, NVIDIA's revenue was only $4.68 billion, and by 2022, it will rise to $26.91 billion, an increase of nearly 6 times, and in 2023, it will soar to $60.922 billion.

In the first quarter of this year, NVIDIA's revenue was US$26 billion, a surge of 262%, and its net profit was US$14.8 billion, a year-on-year increase of 628%, equivalent to a net profit of 1.2 billion yuan per day. At this rate of development, NVIDIA's revenue in 2024 is likely to exceed $100 billion. With such a revenue capacity and such a speed of making money, can the capital market not be optimistic?

Not only Nvidia, but also two technology companies in the United States with a market value of more than $3 trillion, one is Microsoft, with a market capitalization of $3.32 trillion, and the other is Apple, with a market capitalization of $3.28 trillion.

The reason for the high level of these giants is their terrifying earning power. Needless to say, Apple has become the most profitable company in the world many times, with a net profit of 97 billion US dollars in 2023, equivalent to 702.7 billion yuan, second only to Saudi Aramco. Microsoft is not weak, with a net profit of up to US$72.3 billion, equivalent to 523.7 billion yuan, in fiscal 2023.

Microsoft's market capitalization can exceed $3 trillion and surpass Apple, also because it seized the explosion of artificial intelligence. There is no doubt that artificial intelligence is the hottest concept at the moment, and the United States has grasped it and taken the lead.

Although we have also achieved very good results in the field of artificial intelligence, second only to the United States, there is still a certain gap. However, I believe that in the track of artificial intelligence, we will definitely be able to catch up.

View original image 47K

• 

• 

• 

• 

Take the network and carefully screen