This Wednesday, Nvidia surpassed $3 trillion (about €2.76 trillion) in stock market value and overtook Apple as the second largest listed company in the world, only behind Microsoft.
Its shares appreciated by 5.2% this Wednesday, reaching $1,224 per share and a capitalization of $3.01 billion. Nvidia’s milestone, sealed at the close of Wall Street, follows weeks of prosperity after presenting its good quarterly results and the announcement of new chips it made this past Sunday.
The value multiplies by eight in a year and a half
Nvidia chips power artificial intelligence, which today seems to touch everything. The company’s founder and CEO, Jensen Huang, reiterated this Sunday that humanity is entering a “new industrial revolution” thanks to generative AI. The insatiable demand for the Santa Clara (California) group’s chips has catapulted the group’s valuation, multiplying almost eight-fold in 18 months. So far this year, shares are up 154%. Nvidia recently announced its intention to make a split which will give 10 shares for each current one.
Luis Federico Florio
Despite growing competition from rivals such as AMD, Intel or Microsoft and Google, which are beginning to develop their own semiconductors, Nvidia maintains a certain advantage. “Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” compared Jake Dollarhide, CEO of Longbow Asset Management. The analyst assumes that it will also surpass Microsoft in value.
Apple, for its part, is relegated to third position. The firm was the first to reach the trillion-dollar mark, 2 trillion and finally 3 trillion – in June 2023 – but it has doubts among investors due to its dependence on the iPhone, Chinese demand and a certain delay in the company’s career. AI. In the so-called club of the magnificent seven -Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla-, Apple lags behind in performance, along with Tesla, with a rebound of just 5% in the year.
Saudi Aramco appears behind American technological dominance
The list of large listed companies remains monopolized by five American technology companies: Microsoft (3.15 billion in stock market value), Nvidia (3.01), Apple (3), Alphabet (2.17) and Amazon (1.88) , followed by the Saudi oil company Aramco (1.82).
