Jensen Huang bet on AI chips and oh boy, it’s workedhttps://t.co/jYGLaU4j3B
— Zoe Kleinman (@zsk) June 6, 2024
Nvidia’s market value surged past $3 trillion on Wednesday, overtaking Apple to become the world’s second most valuable publicly listed company. The US firm’s share price rose more than 5% to over $1,224, continuing a rapid climb that started last year. This remarkable growth has been driven by significant investments in artificial intelligence (AI), positioning Nvidia as a major player in the industry.
The company now sits just behind Microsoft, another key player thanks to its investments in ChatGPT-maker OpenAI.
📈 Les pelles et les pioches on a dit…
Nvidia passes Apple in market cap as second-most valuable public U.S. company 👉 https://t.co/G1sVNAWw0N pic.twitter.com/anIDDiDwyW
— Laura Bokobza 💙💛 (@lbokobza) June 6, 2024
Valued at “just” $2 trillion as recently as February, Nvidia sparked a new wave of share purchases after announcing plans last month for a stock split. The move will increase the number of shares by a factor of 10 and reduce their value accordingly, aiming to make shares more affordable for smaller investors.
The stock split is set to occur on Friday and is expected to generate even more demand.
📊 #TCS, #TataComm, #Infosys, Netweb Tech: Check how Indian stocks are performing after NVIDIA surpassed Apple to become the world's second-most valuable company! 💼📈https://t.co/Okr1hQMMJ5
— Zee Business (@ZeeBusiness) June 6, 2024
Nvidia’s AI investments drive growth
Founded in 1993, Nvidia initially made computer chips that process graphics, particularly for computer games.
Nvidia's value hits $3tn, overtaking Apple. It is powered by bets that the firm is positioned to be a major winner in #AI investment. Its market value now sits just behind Microsoft, thanks to its investments in Chat GPT-maker OpenAI. https://t.co/EVWqGw8mFd
— Jennifer Stirrup #MBA Topics: #AI #Data #Strategy (@jenstirrup) June 6, 2024
However, long before the AI revolution, the company began incorporating features into its chips that aid machine learning, significantly increasing its market share. Nvidia is now seen as a key company to watch as AI-powered technology spreads across the business world, a shift CEO Jensen Huang has called the dawn of the “next industrial revolution.”
The company has experienced explosive growth, reporting sales of $26 billion in the three months leading to 28 April—more than triple the same period in 2023, and up 18% from the previous quarter. Optimism about AI is one of the forces behind a broader market rally over the last year, pushing the S&P 500 and the Nasdaq to new records on Wednesday.
Apple had appeared to be losing ground earlier this year as sales growth stalled. However, in recent weeks, its shares have been buoyed by anticipation over how it plans to incorporate AI into its strategy. Shares in Apple rose 0.7%, giving it a market capitalization of roughly $3 trillion, calculated by multiplying the number of shares by the current share price.
