Nvidia‘s (NVDA 0.35%) stock surged 16% to a new all-time high on Feb. 22 after the chipmaker’s latest earnings report crushed Wall Street’s expectations. For the fourth quarter of fiscal 2024, which ended on Jan. 28, its revenue surged 265% year over year to $22.1 billion and surpassed analysts’ expectations by $1.6 billion. Its adjusted earnings soared 486% to $5.16 per share and cleared the consensus forecast by $0.52.
For the full year, Nvidia’s revenue jumped 126% to $60.9 billion as its adjusted EPS climbed 288%. That represented a stunning acceleration from its flat revenue growth and 25% decline in adjusted earnings in fiscal 2023.
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Nvidia’s 280% rally over the past 12 months has propelled its market cap to $1.96 trillion, making it the world’s third-most-valuable company after Microsoft(MSFT -0.32%), which is worth $3.06 trillion, and Apple, which is worth $2.85 trillion. So does Nvidia have a realistic shot at surpassing Apple and stealing the crown from Microsoft by 2025?
Why is Nvidia growing like a weed?
Nvidia’s recent growth spurt was entirely driven by the explosive growth of the artificial intelligence (AI) market. Nvidia’s top-tier data center GPUs are used to process complex AI tasks more efficiently than stand-alone CPUs, and companies scrambled to purchase those chips to keep pace with the growth of generative AI platforms like OpenAI’s ChatGPT.
All of the world’s leading AI-oriented companies — including OpenAI, its top backer Microsoft, Amazon, Alphabet‘s Google, and Meta Platforms — use Nvidia’s GPUs. Its GPU sales to China were throttled by export curbs over the past year, but the market’s demand is still outstripping its supply by a significant margin.
Nvidia generated 78% of its revenue from its data center chips in fiscal 2024, compared to just 56% of its revenue in fiscal 2023. That rapid expansion curbed its dependence on gaming GPUs, which previously generated most of its revenue but were highly exposed to the PC market’s post-pandemic slowdown and the volatile crypto mining market.
How much could Nvidia be worth in 2025?
The bulls believe Nvidia will continue to dominate the AI market, even as its rival AMD enters the ring with its cheaper data center GPUs, and cloud giants like Meta and Google start developing their own first-party AI GPUs. Based on those rosy expectations, analysts expect Nvidia’s revenue to grow at a compound annual growth rate (CAGR) of 35% from fiscal 2024 to fiscal 2027 as its EPS rises at a CAGR of 37%.
Nvidia’s stock isn’t cheap at 35 times forward earnings and 18 times this year’s sales, but it seems reasonably valued relative to its growth rates. If it maintains those valuations, meets analysts’ expectations, and still trades at 35 times forward earnings by the beginning of fiscal 2027 (which starts in Jan. 2026), its stock might be worth $1,085 per share with a market cap of about $2.7 trillion by late 2025. That would represent a near-40% gain from its current levels.
But will it be more valuable than Microsoft?
We should take those hazy long-term estimates with a grain of salt, since Nvidia repeatedly beat analysts’ expectations over the past year, but they imply the chipmaker probably won’t be more valuable than Microsoft by 2025.
Microsoft has also tapped into the AI market’s explosive growth via its big investment in OpenAI and the integration of its generative AI tools into its own cloud-based services. Analysts expect its revenue and earnings to rise at a CAGR of 15% and 17%, respectively, from fiscal 2023 (which ended last June) to fiscal 2026.
Like Nvidia, Microsoft also trades at 35 times forward earnings. If it maintains that premium multiple and matches Wall Street’s expectations, it could trade at about $550 with a market cap of $4.1 trillion by early 2026.
Look beyond Nvidia’s market cap
Simply put, Nvidia won’t catch up to Microsoft unless the bulls abruptly bid its valuations to unsustainable levels or Microsoft drops the ball and gets revalued as a slower-growth company.
Instead of wondering if either of those scenarios will happen, investors should focus on Nvidia’s growth potential instead of its market capitalization. It’s still selling picks and shovels for the AI gold rush, and it could still have plenty of room to run before longer-term headwinds like AMD’s GPUs or first-party chips meaningfully affect its growth.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Leo Sun has positions in Amazon, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
