New York City — Nvidia, the renowned chipmaker, has seen its market value soar above $3 trillion, surpassing Apple to claim the title of the second most valuable publicly listed company globally. This remarkable achievement comes on the heels of a more than 5% increase in the company’s share price on Wednesday, pushing it to over $1,224 per share.
The substantial growth in Nvidia’s market value can be attributed to the increasing optimism surrounding its position in the artificial intelligence (AI) sector. With a rapid ascent that commenced last year, the company has garnered significant attention and investment as a major player in the AI industry. This surge has placed Nvidia just behind Microsoft, another major player known for its investments in AI technologies such as Chat GPT-maker OpenAI.
In a strategic move to make shares more accessible to small-time investors, Nvidia recently announced plans for a stock split that will increase the number of shares by a factor of 10 and adjust their value accordingly. Anticipation for this stock split, set to take place on Friday, has further fueled demand for Nvidia’s stock and contributed to its escalating market value.
Founded in 1993, Nvidia initially gained recognition for designing computer chips tailored for graphics processing, primarily for gaming purposes. Over the years, the company expanded its offerings by incorporating features in its chips aimed at enhancing machine learning capabilities, a decision that has significantly bolstered its market presence.
Nvidia’s CEO, Jensen Huang, has been a driving force behind the company’s impressive growth and evolution. Under his leadership, Nvidia reported a substantial increase in sales, reaching $26 billion in the three months leading up to April 28. This figure marks a significant uptick from the same period in 2023, showcasing the company’s robust performance in the market.
The surge in Nvidia’s market value and the broader market rally in the tech industry are indicative of the growing influence of AI-powered technologies. This transformative trend has propelled not only Nvidia but also other tech giants like Apple, which has also shown resilience and adaptability in incorporating AI into its strategic vision. As the tech landscape continues to evolve, companies like Nvidia and Apple are poised to play a pivotal role in shaping the future of AI-driven innovations in the business world.