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Today: June 23, 2024
June 6, 2024

Nvidia Surpasses $3 Trillion Market Value, Overtakes Apple

Nvidia Corp., already the world’s most valuable semiconductor firm, has now achieved a historic milestone by becoming the first computer-chip company to surpass $3 trillion in market capitalization. This significant accomplishment also means Nvidia has overtaken Apple Inc. in market value, underscoring its dominant position in the tech industry.

The Santa Clara, California-based company has experienced a remarkable rally in its share price, which has surged approximately 147% this year. This increase translates to an addition of about $1.8 trillion to its market value, driven by the skyrocketing demand for its chips, which are essential for powering artificial intelligence (AI) tasks. On a notable trading day, Nvidia’s shares rose by 5.2%, closing at a record $1,224.40, thus pushing its market capitalization past the $3 trillion mark.

Nvidia’s CEO, Jensen Huang, has been instrumental in the company’s rapid ascent. Under his leadership, Nvidia has consistently outpaced its rivals and shown no signs of slowing down. Huang has ambitious plans to upgrade Nvidia’s AI accelerators annually, ensuring the company remains at the forefront of technological innovation. The recent surge in Nvidia’s stock not only propelled the company’s market value but also significantly increased Huang’s personal wealth by over $5 billion, bringing it to $107.4 billion, according to the Bloomberg Billionaires Index.

The rise of generative AI represents a transformative shift in the tech industry, akin to a new industrial revolution. Nvidia is poised to play a pivotal role as this technology transitions into personal computing. Huang emphasized this during his keynote address at National Taiwan University, highlighting the early stages of this significant change.

Angelo Zino, a senior equity analyst at CFRA Research, echoed this sentiment, expressing confidence in Nvidia’s future. He noted the improved visibility and the greater momentum on the GPU, CPU, and networking fronts, which are expected to drive the company’s performance beyond current market estimates.

Nvidia has emerged as the primary beneficiary of the substantial increase in AI-related investments. This has propelled the company into a competitive race to become the world’s most valuable company. While Nvidia still trails Microsoft Corp. in market value, many analysts on Wall Street believe it’s only a matter of time before Nvidia surpasses Microsoft as well.

In contrast, Apple has faced several challenges this year. The technology giant has grappled with concerns over declining iPhone demand in China and a substantial fine imposed by the European Union. Although Apple’s shares have recently turned positive for 2024, reflecting a slow improvement in investor sentiment, the company has struggled to maintain the same level of market momentum as Nvidia.

Nvidia’s historic achievement underscores the significant shifts occurring within the tech industry, driven largely by the rapid advancement and integration of AI technologies. As the demand for powerful AI chips continues to grow, Nvidia’s strategic innovations and market performance position it as a leading force in the new technological era.

Read more Business related news on R9 News
Jhumpa Lahiri

Jhumpa Lahiri

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