Nvidia Market is now a $3 trillion company, making it the second-most-valuable company in the U.S. stock market.
As CNBC reports, Nvidia shares closed today up 5% to $1,224.40, giving the company a market cap of $3.01 trillion for the first time. That puts it just ahead of Apple, with its $3 trillion, making it the second-largest public company behind Microsoft, which has a market cap of $3.15 trillion.
Nvidia has seen phenomenal growth in the last few years, thanks in large part to its leadership in the AI race, becoming a leading chip supplier for companies looking to delve into the technology. According to CNBC, the company’s AI accelerators have between 70% and 95% of the market share for artificial intelligence chips.
Nvidia Market: Surging Ahead in AI Dominance and Market Valuation
In turn, Nvidia’s market cap has rapidly skyrocketed over the last two years in particular. The tech company, best known for its gaming and graphics GPUs, reached a market cap of $2 trillion just this past February, becoming the first chipmaker to reach the milestone. That came less than a year after it hit the $1 trillion mark in May 2023.
To put it in perspective: as CNBC points out, Nvidia stock has soared more than 3,224% over the past five years, and it shows no signs of slowing down. The company reported first-quarter earnings of a whopping $26 billion last month, more than triple its earnings from the same period a year ago.
The company announced last month that it plans to release a new AI chip once per year, an increase from the previous once every two years cadence.
Nvidia’s stock soared to record highs on Wednesday, pushing the AI chipmaker’s valuation past the $3 trillion mark and surpassing Apple to become the world’s second most valuable company. Nvidia is also preparing to split its stock ten-for-one, effective June 7, to increase its appeal to individual investors.
The surge in Nvidia’s market value above Apple’s marks a significant shift in Silicon Valley, where Apple, co-founded by Steve Jobs, has dominated since the iPhone’s launch in 2007. Nvidia’s stock rose 5.2% to close at $1,224.40, valuing the company at $3.012 trillion. Meanwhile, Apple’s market capitalization stood at $3.003 trillion after its stock climbed 0.8%.
“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” said Jake Dollarhide, CEO at Longbow Asset Management. “It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There’s a lot of retail money that’s piling in on what they see as a straight shot up.”
Nvidia’s stock has surged 147% so far in 2024, driven by soaring demand for its top-tier processors. These processors are crucial as Microsoft, Meta Platforms, and Google-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology. The company’s stock has rallied nearly 30% since May 22, following a stellar revenue forecast.
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