The Big Number: $1.5 Trillion
It’s a staggering number that some analysts worry may be a dangerous mirage. Over the last 12 months, the market value of a chipmaker powering artificial intelligence has surged by more than $1.5 trillion. On an earnings call, the chipmaker reported that its revenue in the fourth quarter more than tripled from a year earlier to $22.1 billion, while profit soared nearly ninefold to $12.3 billion. It projected further growth in the current quarter, forecasting revenue of about $24 billion. The chipmaker’s stock price closed at 31 times its sales. The chipmaker has been early to the AI trend and accounts for over 70 percent of AI chip sales. Experts are divided on whether the company has enough room to justify its valuation, warning of potential risks.