ššNvidia hits $3 trillion market cap on back of AI boom š
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.
Apple was the first U.S. company to reach a $3 trillion market cap in January 2022.
Microsoft hit $3 trillion in market value in January 2024.
Nvidia shares are up more than 3,224% over the past five years.
NvidiaĀ shares closed up 5% to $1,224.40 on Wednesday, giving the company a market cap above $3 trillion for the first time as investors continue to clamor for a piece of the company at the heart of the boom in generative artificial intelligence.
NvidiaĀ also passed AppleĀ to become the second-largest public company behind Microsoft.
Nvidiaās milestone is the latest stunning mark in a run that has seen the stock soar more than 3,224% over the past five years. The company willĀ split its stockĀ 10-for-1 later this month.
AppleĀ was the first U.S. company to reach a $3 trillion market cap during intraday trading in January 2022.Ā MicrosoftĀ hit $3 trillion in market value in January 2024. Nvidia, which was founded in 1993,Ā passed the $2 trillion valuationĀ in February, and it only took roughly three months from there for it to pass $3 trillion.
In May, Nvidia reportedĀ first-quarter earningsĀ that showed demand for the companyās pricey and powerful graphics processing units, or GPUs, showed no sign of a slowdown. Nvidia reported overall sales of $26 billion, more than triple what it generated a year ago. Nvidia also beat Wall Street expectations for sales and earnings and said it would report revenue of about $28 billion in the current quarter.
Nvidiaās surge in recent years has been powered by the tech industryās need for its chips, which are used to develop and deploy big AI models such as the one at the heart of OpenAIās ChatGPT.
Companies such asĀ Google,Ā Microsoft,Ā Meta,Ā AmazonĀ and OpenAI are buying billions of dollars worth of Nvidiaās GPUs.
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