Nvidia, the AI chipmaker, has become Wall Street’s darling, with its market capitalization rising to $3.019 trillion on Wednesday, surpassing Apple’s $2.99 trillion market cap and making it the second-largest publicly traded company in the US, behind Microsoft. This makes Nvidia the third company in the US to cross the $3 trillion mark, behind Apple and Microsoft. The company’s shares rose 5.2% to about $1,224.4 a share, while Apple shares gained 0.8% to $196, leading to new record highs for the S&P 500 and tech-heavy Nasdaq indexes.
Nvidia has been the biggest beneficiary of the AI mania on Wall Street this year, with the stock up 147% so far in 2023 after soaring 239% in 2022. Apple shares have only gained about 1.7% year-to-date, highlighting the dominance of Nvidia in the semiconductor market. CEO Jensen Huang announced that the company will roll out its most advanced AI chip platform, Rubin, in 2026, succeeding the Blackwell chip announced in March. Nvidia accounts for around 70% of AI semiconductor sales, leading some analysts to believe that the stock has room for further growth.
Analysts like Angelo Zino from CFRA Research believe that Nvidia is on track to become the most valuable company, given its ability to monetize AI and its large addressable market expansion opportunities in the tech sector. Nvidia also announced a 10-for-1 stock split last month, making shares more accessible for individual investors. The post-split shares will begin trading on the market on June 10, allowing more investors to take part in Nvidia’s success.
Overall, Nvidia continues to dominate the AI market, with its skyrocketing market capitalization and stock performance reflecting its status as a tech powerhouse. The company’s upcoming Rubin platform and focus on AI innovation further solidify its position as a leader in the semiconductor industry. With the stock split making shares more affordable, individual investors will have the opportunity to be part of Nvidia’s growth story and potentially benefit from its future successes. As Nvidia’s stock continues to rise, it remains a strong contender in the tech sector and a key player in the AI revolution.
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