San Francisco, CA – Nvidia stock experienced a slight dip in early trading Thursday following a surge that propelled the company’s market cap over $3 trillion for the first time. The stock opened at $1,240.09 per share before seeing a 0.4% drop in morning trades.
This rise in Nvidia’s value pushed it past Apple to become the second most valuable company on the US stock market, with Microsoft currently holding the top spot. The uptick in Nvidia’s stock was part of a broader increase in tech stocks driven by hopes of rate cuts by the Federal Reserve as early as July.
Nvidia has been a focal point for investor interest in artificial intelligence, particularly with the recent release of ChatGPT by OpenAI. The company’s stock has seen significant gains, rising over 140% this year, 200% in the last year, and over 3,300% in the past five years.
Despite the early dip in trading, Nvidia’s CEO, Jensen Huang, announced plans for the release of a high-powered version of the Blackwell chip, called Blackwell Ultra, in 2025, followed by a new AI chip platform named Rubin in 2026. The company also unveiled plans for an Ultra version of Rubin in 2027.
Nvidia’s dominance in the tech industry as the leading supplier for AI chips and integrated software is evident as major players like Amazon, Google, Microsoft, Tesla, and others rely on its hardware for various AI applications. In the most recent quarter, Nvidia reported record revenues, led by a significant increase in Data Center revenue.
While Nvidia faces competition from companies like AMD and Intel in the AI chip market, it continues to hold a strong position within the industry. Both AMD and Intel are pushing forward with their own AI chip offerings, aiming to challenge Nvidia’s market share.
The announcement of a stock split and dividend increase by Nvidia further solidifies its position in the market. Despite challenges from competitors and customers seeking to reduce dependence on its chips, Nvidia looks set to maintain its leading status in the AI sector for the foreseeable future.