Nvidia Stock Price: The largest AI stock and company in the world, is in a free fall on February 27, despite smashing all estimates of Wall Street in its fourth quarterly results. It is none other than Nvidia. At the time of writing, the stock lost about $273 billion of market value, while in percentage terms, the downside was more than 8%. Following Nvidia's free fall, tech-heavy index Nasdaq also traded lower. Despite this, Nvidia is a multi-bagger, a strong contender for value gains in the future. In the longest run, Nvidia stocks have not only made investors crorepati but also delivered some of the heftiest stock splits.
Nvidia Stock Price:
After market hours on February 27, Nvidia stock closed at $120.15, down by 8.5% on Nasdaq. Following the free fall, the AI giant lost $272.65 billion of market value, taking its total market capitalisation to $2.942 trillion. The m-cap erased its $3 trillion mark.
Nonetheless, Nvidia continues to be the second largest company in the world after Apple, whose market cap is about $3.564 trillion. But Nvidia now faces intense competition from Microsoft, whose market cap is $2.918 trillion and holds the third largest company title.
Despite the latest drop, Nvidia shares' all-time gains after adjusting for corporate actions like dividends or stock splits came to around 300,275% as of February 27, 2025. Once upon a time, the stock was merely at $0.040 apiece on January 22, 1999.
Let's suppose, an investor bought Nvidia shares in January 1999, at the price of $1,000. At 300,275% gains, their investment will rise to $30,02,750, taking their total corpus value to $30,03,750. In the current Indian rupee, the $30,03,750 is about Rs 26,22,05,748 or Rs 26.22 crore.
Nvidia Stock Split:
Notably, Nvidia shares have corrected significantly due to its stock splits. Last year, Nvidia carried one of the highest stock splits of 2024, in the ratio of 1:10, where its share price corrected sharply however the share capital remained the same. In its history, Nvidia's stock splits have multiplied the portfolio of investors by 480 times. Here's how!
Date
Split
Multiple
Cumulative multiple
2024-06-10
10:1
x10
x480
2021-07-20
4:1
x4
x48
2007-09-11
3:2
x1.5
x12
2006-04-07
2:1
x2
x8
2001-09-12
2:1
x2
x4
2000-06-27
2:1
x2
x2
Nvidia Earnings:
On February 26, Nvidia posted record quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year ago. Also, the company posted record quarterly Data Center revenue of $35.6 billion, up 16% from Q3 and up 93% from a year ago. Furthermore, Nvidia posted a record full-year revenue of $130.5 billion, up 114%.
Jensen Huang, founder and CEO of NVIDIA said, "Demand for Blackwell is amazing as reasoning AI adds another scaling law - increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter."
He added, "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries."
Nvidia Dividend:
The AI player has also announced to pay its next quarterly cash dividend of $0.01 per share on April 2, 2025, to all shareholders of record on March 12, 2025.
Nvidia Earnings Outlook For Q1 of Fiscal 2026:
- Revenue is expected to be $43.0 billion, plus or minus 2%.
- GAAP and non-GAAP gross margins are expected to be 70.6% and 71.0%, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $5.2 billion and $3.6 billion, respectively.
- GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million, excluding gains and losses from non-marketable and publicly-held equity securities.
- GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items.
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