Nvidia world’s 2nd most valuable company! Nvidia’s stock price soared on Wednesday to unprecedented levels, propelling the AI chipmaker‘s market capitalization above $3 trillion and surpassing Apple to become the world’s second most valuable company globally.
The company is gearing up for a ten-for-one stock split, set to take effect on June 7, which could potentially attract more individual investors.
This shift in Silicon Valley’s landscape, long dominated by Apple since the introduction of the iPhone in 2007, highlights the growing significance of AI in the tech industry, says a Reuters report.
Nvidia’s stock surged 5.2%, closing at $1,224.40 and valuing the company at $3.012 trillion. Apple’s market capitalization reached $3.003 trillion following a 0.8% rise in its stock.
Meanwhile, Microsoft, headquartered in Redmond, Washington, retained its position as the world’s most valuable company at $3.15 trillion after a 1.9% increase in its shares.
“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” Jake Dollarhide, chief executive officer at Longbow Asset Management was quoted as saying by Reuters.
“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 experienced a remarkable 147% surge year-to-date, fueled by the overwhelming demand for its high-end processors as major tech giants like Microsoft, Meta Platforms, and Alphabet (Google’s parent company) compete to enhance their AI computing capabilities and establish dominance in this emerging technology.
The company’s market capitalization increased by nearly $150 million on Wednesday alone, surpassing the total value of AT&T.
The enthusiasm for AI has also lifted other chip stocks, with the PHLX chip index climbing 4.5% on Wednesday. Super Micro Computer, a company that sells AI-optimized servers equipped with Nvidia chips, saw its stock rise by 4%.
While Nvidia rides the wave of AI excitement on Wall Street, Apple faces challenges such as weak iPhone demand and intense competition in China, the world’s largest smartphone market. Some investors also perceive Apple as lagging behind other tech giants in incorporating AI features into their products and services.
Despite Nvidia’s stock gains outpacing analysts’ projections for its future earnings, the company’s valuation remains more attractive compared to a year ago. Nvidia currently trades at 39 times expected earnings, a significant decrease from its previous valuation of over 70 times expected earnings, according to LSEG data.
The company is gearing up for a ten-for-one stock split, set to take effect on June 7, which could potentially attract more individual investors.
This shift in Silicon Valley’s landscape, long dominated by Apple since the introduction of the iPhone in 2007, highlights the growing significance of AI in the tech industry, says a Reuters report.
Nvidia’s stock surged 5.2%, closing at $1,224.40 and valuing the company at $3.012 trillion. Apple’s market capitalization reached $3.003 trillion following a 0.8% rise in its stock.
Meanwhile, Microsoft, headquartered in Redmond, Washington, retained its position as the world’s most valuable company at $3.15 trillion after a 1.9% increase in its shares.
“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” Jake Dollarhide, chief executive officer at Longbow Asset Management was quoted as saying by Reuters.
“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 experienced a remarkable 147% surge year-to-date, fueled by the overwhelming demand for its high-end processors as major tech giants like Microsoft, Meta Platforms, and Alphabet (Google’s parent company) compete to enhance their AI computing capabilities and establish dominance in this emerging technology.
The company’s market capitalization increased by nearly $150 million on Wednesday alone, surpassing the total value of AT&T.
The enthusiasm for AI has also lifted other chip stocks, with the PHLX chip index climbing 4.5% on Wednesday. Super Micro Computer, a company that sells AI-optimized servers equipped with Nvidia chips, saw its stock rise by 4%.
While Nvidia rides the wave of AI excitement on Wall Street, Apple faces challenges such as weak iPhone demand and intense competition in China, the world’s largest smartphone market. Some investors also perceive Apple as lagging behind other tech giants in incorporating AI features into their products and services.
Despite Nvidia’s stock gains outpacing analysts’ projections for its future earnings, the company’s valuation remains more attractive compared to a year ago. Nvidia currently trades at 39 times expected earnings, a significant decrease from its previous valuation of over 70 times expected earnings, according to LSEG data.
