Nvidia Hits $5.5 Trillion -- It's Now Worth More Than the GDP of Every Country but the U.S. and China

"Now the stock has crossed the $5.5 trillion threshold , which remarkably means it is worth more than the entire annual economic output of every nation on Earth except the U.S. and China. That raises a fascinating question for investors: how exactly does one company become larger than virtually all industrialized economies in just half a decade?"

"That growth did not happen because Nvidia stumbled into a lucky product cycle. The company became the foundational infrastructure provider for generative AI. Its GPUs power the training and inference workloads behind large language models, enterprise AI systems, robotics, autonomous vehicles, and increasingly, national AI infrastructure projects."

"That's a fancy way of saying Nvidia became the company selling picks and shovels during the AI gold rush. Its latest earnings reports showed revenue growth rates many mature companies can only dream about. In its most recent fiscal year, Nvidia generated nearly $216 billion in revenue and $96.6 billion in free cash flow."

"Wall Street expects it to produce over $400 billion in FCF over the next two years. Few companies in history have scaled"

Nvidia’s market capitalization rose from about $345 billion in 2021 to over $5.5 trillion, adding more than $5 trillion in value in five years. The growth accelerated as data center revenue expanded while gaming revenue collapsed. Nvidia became foundational infrastructure for generative AI, with GPUs used for training and inference workloads behind large language models, enterprise AI systems, robotics, autonomous vehicles, and national AI infrastructure projects. The company’s scale is reflected in financial results, including nearly $216 billion in revenue and $96.6 billion in free cash flow in its most recent fiscal year. Expectations point to over $400 billion in free cash flow over the next two years.

Read at 24/7 Wall St.