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Jun 12, 2024 435

Nvidia hits $3 trillion market cap on back of AI boom

#global

"Nvidia surpassed $3 trillion in market cap during intraday trading on Wednesday as investors continue to clamor for the company making most of the chips powering the AI boom."

Nvidia's stock surged by 5%, reaching a market cap of over $3 trillion, making it the second-largest public company behind Microsoft. This significant rise reflects investors' growing interest in Nvidia's central role in the generative AI boom, with a historic 3,224% increase over five years. The company plans a 10-for-1 stock split later this month.

Apple previously achieved a $3 trillion market cap in January 2022, and Microsoft reached the same milestone in January 2024. Nvidia, founded in 1993, surpassed the $2 trillion mark in February and hit $3 trillion just three months later, showcasing rapid growth fueled by its innovations in GPU technology.

Nvidia's first-quarter earnings demonstrated robust demand for its GPUs, essential for AI development, with sales tripling from the previous year to $26 billion. The company's technology supports major tech players like Google, Microsoft, Meta, Amazon, and OpenAI, reinforcing its critical role in the tech industry's expansion into AI applications.