NVIDIA crosses $3 trillion valuation to beat Apple
What's the story
NVIDIA Corporation, the world's leading semiconductor company, has seen its shares rise by 5.2% to close at a record $1,224.40 on June 5.
This increase pushed NVIDIA's market value over $3 trillion, surpassing Apple Inc., and making it the second-most valuable company globally after Microsoft.
According to Bloomberg, this is the first time a computer-chip firm has achieved a market capitalization of $3 trillion.
Stellar growth
NVIDIA's shares skyrocket, CEO's wealth follows suit
NVIDIA's shares have seen a significant surge this year, increasing by roughly 147% and adding about $1.8 trillion to the company's value.
This growth is largely attributed to the rising demand for NVIDIA's chips that power artificial intelligence tasks.
Following Wednesday's stock surge, CEO Jensen Huang saw his wealth increase by over $5 billion, bringing his total to $107.4 billion according to the Bloomberg Billionaires Index.
AI dominance
NVIDIA's role in AI revolution and future plans
During a keynote address at National Taiwan University, Huang described the rise of generative AI as a "new industrial revolution" and emphasized NVIDIA's crucial role in this transformation.
He also announced plans for the company to upgrade its AI accelerators annually, showing no signs of slowing down.
Senior Equity Analyst at CFRA Research, Angelo Zino, sees this development as just the beginning, citing improved visibility and greater momentum in GPU, CPU, and networking as drivers for consensus estimate upside.
Market dynamics
NVIDIA's race to become world's most valuable company
Despite currently trailing Microsoft ($3.15 trillion) in market value, Wall Street analysts believe it is only a matter of time before NVIDIA overtakes it.
Meanwhile, Apple has faced challenges this year with its shares pressured by concerns over declining iPhone demand in China and a fine from the European Union.
However, Apple shares have recently turned positive for 2024 as investor sentiment slowly improves.