Nvidia CEO Jensen Huang delivers his keynote speech ahead of Computex 2024 in Taipei on June 2, 2024.
Sam Yeh | AFP | Getty Images
Nvidia Shares closed up 5% to $1,224.40 on Wednesday, giving the company a market value of more than $3 trillion for the first time, as investors continue to clamor for a piece of the company at the heart of the boom in generative artificial intelligence.
Nvidia also surpassed Apple to become the second-largest public company behind Microsoft.
Nvidia's achievement is the latest stunning mark in a string that has seen the stock rise more than 3,224% over the past five years. The company will split its stock 10-for-1 later this month.
apple It was the first US company to reach $3 trillion in market capitalization during daily trading in January 2022. Microsoft Its market cap reached $3 trillion in January 2024. Nvidia, founded in 1993, passed the $2 trillion valuation in February, and it only took about three months from there to pass the $3 trillion valuation.
In May, Nvidia reported first-quarter earnings that showed demand for the company's powerful, expensive graphics processing units, or GPUs, showed no sign of slowing. Nvidia reported total sales of $26 billion, more than triple what it achieved a year ago. Nvidia also beat Wall Street expectations for sales and profits and said it would report revenue of about $28 billion in the current quarter.
Nvidia's rise in recent years has been fueled by the tech industry's need for its chips, which are used to develop and deploy large AI models like the one at the heart of OpenAI's ChatGPT.
Companies like Google, Microsoft, Meta, Amazon, and OpenAI are purchasing billions of dollars worth of GPUs from Nvidia.
