According to recent reports by Bloomberg, Nvidia became the first computer chip firm to reach a $3 trillion market capitalisation on Wednesday, 5 June 2024. With this, the company surpassed Apple Inc., becoming the world’s second-most valuable company. Nvidia’s stock soared at 5.2% and settled at $1,224.40, pushing the company value to $3.012 trillion. Apple’s capitalisation reached $3.003 trillion with a growth of 0.8% in stock prices. Meanwhile, Microsoft’s share price grew by 1.9%, and it remained the world’s most valuable company at $3.15 trillion.
Nvidia last beat Apple with a higher value in 2002. At that time, both firms were valued at less than $10 billion each.
The AI behemoth Nvidia’s share prices surged around 147% year-to-date because of growing demand for high-end processors. This added $1.8 trillion to the company’s value.
The craze for AI also pulled other chip stocks on Wednesday. The PHLX chips grew 4.5% on Wednesday, and the Super Computer company’s stock soared 4%. Meanwhile, Apple faced challenges because of the decline in demand for iPhones in China.
The CEO (Chief Executive Officer) of Nvidia, Jensen Huang, recently announced the company’s plans to upgrade its AI accelerators annually, so Nvidia will not slow down anytime soon. The Wednesday stock surge gave a push worth $5 billion to Huang’s wealth. According to the Bloomberg Billionaires Index, Huang’s total worth has now reached $107.4 billion.
During a keynote address at National Taiwan University, Jensen Huang called generative AI’s rise an industrial revolution. He also shared Nvidia can play an important role as new technology enters personal computers.
