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Nvidia Reaches $5 Trillion Valuation
Nvidia has become the first company in history to achieve a valuation of $5 trillion, hitting this milestone on Wednesday. This significant rise in valuation was driven in part by optimism over potential agreements between President Trump and Chinese President Xi Jinping concerning chip export controls that could favor Nvidia.
Financial Performance
In the second quarter, Nvidia reported a revenue increase of 56% to $46.7 billion, despite not making H20 sales to China. The company’s net income margins have exceeded 50%, with GAAP profits of $26.4 billion. The data center segment now accounts for nearly 90% of its revenue, contributing to its strong performance amid the ongoing AI boom.
Market Outlook
Nvidia’s growth potential remains robust, with ongoing enhancements in areas such as physical AI and new chip technologies. Analysts note that despite current challenges, the overall AI market is still in its early stages, providing ample opportunities for further growth.
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