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Nvidia Hits $3T Market Cap Amid AI Boom
Nvidia is now second to Microsoft in terms of market value as investors snap up shares ahead of stock split.
Ben Wodecki
June 10, 2024
2 Min Read
Alamy
This article originally appeared in AI Business.
Nvidia has surpassed Apple to become the world's second most valuable company with a market capitalization of more than $3 trillion.
The company's valuation rose following announcements at the annual Computex event.
Nvidia shares climbed by 6.91% ahead of the company’s 10-for-one stock split effective June 7.
The company is now valued at $3.01 trillion, having reached the $1 trillion market cap in May 2023.
“The next Industrial Revolution has begun, companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center: AI factories, to produce a new commodity: AI,” said Jensen Huang, Nvidia founder and CEO said during the company’s recent earnings call.
The chip maker now stands second only to Microsoft in market capitalization, with both tech giants seeing their stock prices surge due to investments in generative AI.
Nvidia may not hold onto its second-place crown for long though. Apple will host its Worldwide Developers Conference next week, with CEO Tim Cook promising the company will be making “significant investments” in generative AI.
Nvidia started in the early 1990s designing PC chips for video game graphics. More than three decades later, the company is building hardware to power AI workloads, with businesses worldwide snapping up their GPUs to train and run generative AI projects.
Its data center-focused GPUs have been subject to intense demand – the company shipped 900 tons of AI chips in just one quarter of 2023 alone, despite facing export restrictions to one of its biggest markets, China.
CEO Huang said at Computex earlier this week that the company’s accelerated computing hardware will “redefine the future.”
The company is now working on what Huang called a “one-year rhythm” with plans to launch a powerful new GPU every year until 2027. Nvidia’s Blackwell units will start shipping in 2025.
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