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Nvidia is now worth $3 trillion

by on06 June 2024

Worth more than Apple

Nvidia's shares rose five per cent to close at $1,224.40, pushing the company's market value over $3 trillion for the first time. This surge reflects investors' eagerness to invest in a company central to the generative artificial intelligence revolution.

With only Microsoft ahead, Nvidia has overtaken Apple, becoming the world's second-largest public company.

This achievement is not a standalone success but a part of a remarkable trend. Nvidia's stock value has skyrocketed by over 3,224 per cent in the last five years, a testament to the company's consistent growth and potential. The company's plans to conduct a 10-for-1 stock split later this month further underline its positive trajectory.

While the Tame Apple Press has donned sackcloth and ashes as its favourite company has fallen to third place. They are rushing to remind everyone that Jobs’ Mob was the first American company to reach a $3 trillion market cap during the trading day in January 2022, while Microsoft achieved a $3 trillion market value in January 2024. Established in 1993, Nvidia surpassed a $2 trillion valuation in February and did not take long to exceed $3 trillion.

In May, Nvidia's first-quarter earnings report revealed a continued strong demand for its high-end graphics processing units (GPUs). The company announced sales of $26 billion, more than three times the previous year's. Nvidia also exceeded the cocaine nose jobs of Wall Street's sales and earnings forecasts and projected approximately $28 billion in revenue for the current quarter.

Nvidia's recent growth spurt is not a stroke of luck but a result of the tech sector's heavy reliance on its chips. These chips are instrumental in the development and operation of large AI models, such as the one powering OpenAI's ChatGPT. This underscores Nvidia's pivotal role in the tech industry.

Major tech firms, including Google, Microsoft, Meta, Amazon, and OpenAI, are investing billions in Nvidia's GPUs.

Last modified on 06 June 2024
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