Nvidia's astonishing profitability
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Nvidia, the primary avatar of the AI revolution, has solidly ensconced itself not only as one of the most valuable companies in the world but also as one of the most profitable.
Why it matters: Nvidia's profit margins are the envy of the corporate world — it made $14.9 billion of net income on revenue of $26 billion last quarter. By contrast, Nvidia's net income was just $0.7 billion in the final quarter of 2022.
Between the lines: Nvidia earned more last quarter than corporate behemoths like JPMorgan, Berkshire Hathaway, or Amazon, all of which rank consistently among America's most profitable companies.
The big picture: The only U.S. companies to make substantially more money than Nvidia are Apple, Microsoft and Alphabet.
- Outside the U.S., state-owned oil companies Saudi Aramco and Petrobras can beat Nvidia — but Taiwanese chipmaking giant TSMC cannot.
The bottom line: It's not clear how long Nvidia can maintain its current level of profitability. But already it's setting records: Rarely in history has any company managed to increase its profits this quickly to such an astonishingly high level.
