(qlmbusinessnews.com Thurs. 6th June, 2024) London, UK —
“Nvidia Becomes World's Second Most Valuable Company, Overtakes Apple”
Nvidia's market value has surged past $3 trillion (£2.3 trillion), surpassing Apple to become the world's second most valuable publicly listed company. On Wednesday, Nvidia's share price increased by over 5%, reaching more than $1,224. This impressive climb, which began last year, is driven by expectations that Nvidia will be a major beneficiary of significant investments in artificial intelligence (AI).
Nvidia‘s market capitalisation is now just behind Microsoft, another key player in the industry due to its investments in OpenAI, the maker of ChatGPT. Nvidia, valued at $2 trillion as recently as February, initiated a new wave of share purchases after announcing plans for a stock split last month. This split, set for Friday, will increase the number of shares by a factor of 10 and reduce their value, making them more accessible to smaller investors. This move is expected to further boost demand for Nvidia's stock.
Founded in 1993, Nvidia was initially known for producing graphics processing units (GPUs), particularly for computer games. Long before the AI revolution, the company began adding features to its chips to support machine learning, which has significantly increased its market share. Nvidia is now viewed as a crucial company in monitoring the rapid spread of AI-powered technology across the business world, a shift that CEO Jensen Huang has called the “next industrial revolution.”
Nvidia has experienced explosive growth, reporting sales of $26 billion in the three months ending 28 April, more than triple the same period in 2023 and up 18% from the previous three months. The optimism surrounding AI has contributed to a broader market rally over the past year, pushing the S&P 500 and the Nasdaq to new records on Wednesday.
Earlier this year, Apple seemed to be losing momentum as its sales growth slowed. However, recent weeks have seen a resurgence in its shares due to anticipation over how the company plans to integrate AI into its strategy. Apple shares rose by 0.7%, giving it a market capitalisation of roughly $3 trillion, calculated by multiplying the number of shares by the current share price.
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