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Nvidia tops $3 trillion market value

Nvidia tops $3 trillion market value

Nvidia Market

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.

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.

Nvidia’s AI investments drive growth

Founded in 1993, Nvidia initially made computer chips that process graphics, particularly for computer games.

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.”

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The company has experienced explosive growth, reporting sales of $26 billion in the three months leading to 28 Aprilโ€”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.

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