Nvidia is the second most valuable company in the world! Nvidia’s stock price surged to unprecedented levels on Wednesday, pushing the AI chipmaker’s market capitalization to more than $3 trillion and surpassing Apple to become the world’s second-most valuable company.
The company is preparing for a ten-to-one stock split, which is scheduled to take effect on June 7, which could potentially attract more individual investors.
This change in the landscape of Silicon Valley, long dominated by Apple since the introduction of the iPhone in 2007, underscores the growing importance of artificial intelligence in the tech industry, a Reuters report said.
Nvidia shares rose 5.2% to close at $1,224.40 and value the company at $3.012 trillion. Apple’s market capitalization reached $3.003 trillion after Apple shares rose 0.8%.
Meanwhile, Redmond, Washington-based Microsoft retained its position as the world’s most valuable company at $3.15 trillion after its shares rose 1.9%.
“Nvidia is currently making money on AI, and companies like Apple and Meta are spending on AI,” Jake Dollarhide, CEO of Longbow Asset Management, was quoted as saying by Reuters.
“We can predict in advance that Nvidia will also overtake Microsoft. “What they think is a straight shot is going to get a lot of retail money.”
Nvidia shares have enjoyed a remarkable 147% year-to-date surge, driven by overwhelming demand for its high-end processors as major tech giants such as Microsoft, Meta Platforms and Alphabet (Google’s parent company) compete to expand their AI computing capabilities and establish dominance in this emerging technology.
On Wednesday alone, the company’s market capitalization increased by almost $150 million, surpassing AT&T’s total.
Enthusiasm for artificial intelligence also lifted other chip stocks, with the PHLX chip index rising 4.5% on Wednesday. Super Micro Computer, a company that sells AI-optimized servers powered by Nvidia chips, saw its shares rise 4%.
While Nvidia rides the wave of artificial intelligence excitement on Wall Street, Apple faces challenges such as faint iPhone demand and intense competition in China, the world’s largest smartphone market. Some investors also see Apple as lagging behind other tech giants in incorporating artificial intelligence features into its products and services.
Although Nvidia’s shares are rising above analysts’ forecasts for future earnings, the company’s valuation remains more attractive compared to last year. According to LSEG data, Nvidia is currently trading at 39 times expected earnings, a significant decline from its previous valuation of more than 70 times expected earnings.
The company is preparing for a ten-to-one stock split, which is scheduled to take effect on June 7, which could potentially attract more individual investors.
Augment
This change in the landscape of Silicon Valley, long dominated by Apple since the introduction of the iPhone in 2007, underscores the growing importance of artificial intelligence in the tech industry, a Reuters report said.
Nvidia shares rose 5.2% to close at $1,224.40 and value the company at $3.012 trillion. Apple’s market capitalization reached $3.003 trillion after Apple shares rose 0.8%.
Meanwhile, Redmond, Washington-based Microsoft retained its position as the world’s most valuable company at $3.15 trillion after its shares rose 1.9%.
“Nvidia is currently making money on AI, and companies like Apple and Meta are spending on AI,” Jake Dollarhide, CEO of Longbow Asset Management, was quoted as saying by Reuters.
“We can predict in advance that Nvidia will also overtake Microsoft. “What they think is a straight shot is going to get a lot of retail money.”
Nvidia shares have enjoyed a remarkable 147% year-to-date surge, driven by overwhelming demand for its high-end processors as major tech giants such as Microsoft, Meta Platforms and Alphabet (Google’s parent company) compete to expand their AI computing capabilities and establish dominance in this emerging technology.
On Wednesday alone, the company’s market capitalization increased by almost $150 million, surpassing AT&T’s total.
Enthusiasm for artificial intelligence also lifted other chip stocks, with the PHLX chip index rising 4.5% on Wednesday. Super Micro Computer, a company that sells AI-optimized servers powered by Nvidia chips, saw its shares rise 4%.
While Nvidia rides the wave of artificial intelligence excitement on Wall Street, Apple faces challenges such as faint iPhone demand and intense competition in China, the world’s largest smartphone market. Some investors also see Apple as lagging behind other tech giants in incorporating artificial intelligence features into its products and services.
Although Nvidia’s shares are rising above analysts’ forecasts for future earnings, the company’s valuation remains more attractive compared to last year. According to LSEG data, Nvidia is currently trading at 39 times expected earnings, a significant decline from its previous valuation of more than 70 times expected earnings.
