Nvidia’s value exceeds $3 trillion, surpassing Apple

Nvidia’s market value has gone over $3 trillion because of AI investments. Shares have gone up over 5% to $1,224, making the company the second most valuable public company in the world, after Microsoft.

The market value of Nvidia has risen above $3 trillion (£2.3 trillion), making the chipmaker the second most valuable public company in the world after Apple.

On Wednesday, the price of the company’s shares went up more than 5%, to more than $1,224. The company’s value continued to rise at a remarkable pace, beginning last year. This was made possible by betting on the company’s potential to benefit greatly from a surge of artificial intelligence (AI) investments.

Its market value is now second only to Microsoft, which is another major player in the field thanks to its investments in OpenAI, the company that makes Chat GPT. As late as February, Nvidia was worth “just” $2 trillion. When the company said last month that it was going to do a “stock split,” a lot of new people bought shares.

As a result, shares will become 10 times more common and 10 times less valuable. This change will make shares more affordable for small investors. It will probably make even more people want to buy the stock on Friday. Founded in 1993, Nvidia first gained recognition for producing computer chips that handled graphics, primarily for video games.

It began adding features to its chips that it says helped machine learning a long time before AI became popular. As a result, it has gained market share.

Jensen Huang Foresees AI’s Role in the Next Industrial Revolution

Jensen Huang, the boss, has called it the start of the “next industrial revolution” and says it will be interesting to see how quickly AI-powered tech spreads through business.

The three months ending April 28, 2024, saw sales of $26 billion for his company, which is more than three times what they were at that time last year and 18% more than the previous three months. The market has been growing over the past year because people are optimistic about AI. On Wednesday, the S&P 500 and the Nasdaq in the US set new records. Apple looked like it was losing.

But in the past few weeks, its stock price has gone up because people are excited to see how it plans to use AI in its strategy. Multiplying the number of shares in a company by its current share price yields its market capitalization, which is approximately $3 trillion. This is because the firm’s shares went up 0.7%.