Friday, June 21, 2024

NVIDIA overtakes Apple as AI boom propels company value over $3 trillion

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With its market value rocketing to $3.1 trillion, NVIDIA has become the second most valuable company in the world. A five percent rise in share prices pushed the chipmaker ahead of Apple, and now there is only Microsoft which is worth more than NVIDIA.

The soaring value of the firm is due in no small part to its heavy involvement and investment in AI. Having started life in the 1990s as a minor player in the graphic chip market, NVIDIA has ridden the artificial intelligence tidal wave.

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It is only a year since NIVDIA hit a market cap of $1 trillion, and this doubled to $2 trillion in February of this year. It is the tsunami of interest in AI which has driven the company’s share price up and up, and it is now just the third US public company to hit a $3 trillion cap.

It would not be in the least bit surprising if NVIDIA overtook Microsoft in the coming weeks to become the most valuable company. The firm’s involvement with OpenAI, supplying thousands of A100 AI processors to help train GPT-4, is something that shows no signs of abating.

The value increase is also partly fueled by an imminent 10-for-1 stock split, due to take place at market close on Friday.

Image credit: MRMakeDreamstime.com

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