Nvidia has achieved a notable milestone, becoming the second-most valuable company globally and the third to ever reach a market cap of $3 trillion.
Earlier this week, the chipmaker’s market cap hit $3.01 trillion, slightly surpassing Apple’s $3 trillion valuation. However, it remains just behind Microsoft, which stands at approximately $3.16 trillion.
Nvidia’s rapid rise is driven by its dominance in the AI sector, bolstered by its leading chips, highlighting the profitability of artificial intelligence.
Nvidia’s Stock Surge
In the final months of 2022, while OpenAI was launching its public preview of ChatGPT, Nvidia’s shares fluctuated between $150 and $180. Since June 2019, shares have surged over 3,100%, reaching $1,209.98. In 2024 alone, the price of a single share jumped from $481.68.
The company’s financial performance is impressive, evidenced by its recent profit report. In May, Nvidia announced $14 billion in profits, driven by strong chip sales. The company has planned a ten-for-one stock split today (June 7).
CEO Jensen Huang’s Remarks
CEO Jensen Huang stated, “The next industrial revolution has begun. Companies and countries are partnering with NVIDIA to shift traditional data centers to accelerated computing and build AI factories to produce artificial intelligence.
Nvidia’s AI chips dominate, estimated to account for four out of five data center purchases. Its customers include Microsoft, OpenAI, Google, and Amazon.
Nvidia has briefly slipped to third place, just behind Apple, which is set to reveal its AI strategy at its annual developer conference next week. Nvidia’s aggressive upward trajectory suggests it may soon surpass Apple, potentially within weeks.
| Company | Market Cap (Trillions) | Position |
|---|---|---|
| Microsoft | $3.16 | 1st |
| Nvidia | $3.01 | 2nd |
| Apple | $3.00 | 3rd |
