Nvidia hits $3 trillion in value as shares rise 5.2%, chip maker zooms past Apple as second-most valuable company
semiconductor company, has now become the first computer-chip firm to hit a $3 trillion market capitalisation, as per a Bloomberg report. The Santa Clara, California-based company's shares have surged roughly 147 per cent this year, adding about $1.8 trillion due to the increasing demand for its chips that power artificial intelligence (AI) tasks.
On June 5 (US local time), shares rose by 5.2 per cent to close at a record $1,224.40, pushing the chip maker's market value above $3 trillion, surpassing Apple Inc. in the process.Also Read | Battle for the Big Mac: McDonald's loses EU trademark fight against Irish rival Supermac'sThe last time Nvidia's value exceeded Apple's was in 2002, five years before the first iPhone's release.
Back then, both companies were valued at less than $10 billion each.Nvidia shows no signs of slowing down. Chief Executive Officer Jensen Huang announced that the company plans to upgrade its AI accelerators annually.
Wednesday's stock surge increased Huang's wealth by more than $5 billion, bringing his total to $107.4 billion, according to the Bloomberg Billionaires Index.Huang described the rise of generative AI as a new industrial revolution, expecting Nvidia to play a significant role as technology shifts to personal computers. During a keynote address at National Taiwan University, he highlighted the company's pivotal role in this transformation.Also Read | Torrent Pharma in pact with Takeda to commercialize acid reflux drugSenior equity analyst at CFRA Research, Angelo Zino, told Bloomberg he sees this development as just the beginning, citing improved visibility and greater momentum in GPU, CPU, and networking as drivers for consensus estimate upside.Nvidia has benefited immensely from a
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