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Nvidia surpasses $3 trillion in market cap during intraday trading

Nvidia surpasses $3 trillion in market cap during intraday trading An exterior view of the NVIDIA headquarters, in California, U.S., May 30, 2023. (Getty Images)
By Newsroom
Jun 5, 2024 10:48 PM

During Wednesday’s intraday trading session, Nvidia Corporation passed a historic milestone in market value, hitting the $3 trillion barrier. This spike coincides with intense investor interest in the firm, which is at the forefront of chip production for the booming artificial intelligence (AI) market.

Nvidia’s stock rose more than 4% during intraday trade on Wednesday, peaking at $1,219. This spike not only increased Nvidia’s market worth but also caused the business to outperform Apple Inc. in terms of market capitalization on the same day.

Nvidia’s success is the latest in a string of amazing accomplishments, with the company’s stock price rising in recent years as investors bet on the future of artificial intelligence. Nvidia shares have increased by a remarkable 3,224% in only the last five years. Furthermore, Nvidia revealed intentions to split its shares in a 10-to-1 ratio later this month, indicating its rapid surge in value.

This accomplishment placed Nvidia in a prestigious company, following in the footsteps of tech titans such as Apple and Microsoft, all of whom hit the $3 trillion market capitalization milestone in Jan. 2022 and Jan. 2024, respectively.

The increase in Nvidia’s market value follows the company’s strong first-quarter results report, which revealed a surging demand for its high-performance AI processors, also known as GPUs. Nvidia topped Wall Street estimates for both sales and profitability by exceeding $26 billion in total revenue, more than double the number announced a year earlier. Furthermore, the corporation forecasted sales of around $28 billion for the current quarter, indicating that demand for its goods remains strong.

Nvidia’s rise may be ascribed to the technology industry’s voracious demand for its processors, notably for the creation and deployment of large-scale artificial intelligence models. Major businesses like Google, Microsoft, Meta (previously Facebook), Amazon, and OpenAI are among those investing billions of dollars in Nvidia’s graphics processing units (GPUs), highlighting the critical role these processors play in driving AI research.

As Nvidia continues to ride the tide of AI-driven development, its astonishing market value increase underlines the critical role it plays in determining the future of technology and innovation.

Last Updated:  Jun 5, 2024 11:32 PM