Nvidia, a top semiconductor company, has made history by becoming the first computer-chip firm to reach a market value of $3 trillion. This achievement was reported by Bloomberg.
Based in Santa Clara, California, Nvidia’s stock has soared by around 147% this year. This surge has added roughly $1.8 trillion to its market value, driven by high demand for its chips used in artificial intelligence (AI) tasks.
On June 5th, Nvidia’s shares rose by 5.2% to reach a record high of $1,224.40, pushing its market value above $3 trillion and surpassing Apple Inc. in the process.
The last time Nvidia’s value was higher than Apple’s was in 2002, before the release of the first iPhone. At that time, both companies were worth less than $10 billion each.
Nvidia’s CEO, Jensen Huang, announced plans to upgrade its AI accelerators annually. The company’s stock surge on Wednesday increased Huang’s wealth by over $5 billion, bringing his total to $107.4 billion, according to the Bloomberg Billionaires Index.
CEO’s Vision
Huang sees the rise of generative AI as a new industrial revolution and expects Nvidia to play a significant role as technology shifts towards personal computers. He highlighted the company’s pivotal role during a keynote address at National Taiwan University.
Analysts believe Nvidia’s momentum in GPU, CPU, and networking will continue to drive its growth. This development signals only the beginning of Nvidia’s potential, with improvements in visibility and momentum cited as factors for future upside.
Nvidia’s success reflects the increasing spending on AI, positioning the company as a top contender to become the world’s most valuable company, surpassing even Microsoft Corp. Although Apple has faced challenges this year, including concerns over iPhone demand and fines from the EU, its recent positive performance suggests a potential turnaround in investor sentiment.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
