NVIDIA's total market value exceeds $3 trillion, surpassing Apple to become the second largest listed company in the United States
On Wednesday night, the US non-farm payroll data boosted the US stock market, with tech stocks rallying. NVIDIA surged more than 5% intraday, surpassing a market capitalization of over $3 trillion, becoming the second largest publicly traded company after Microsoft
NVIDIA becomes the second largest listed company in the US stock market.
Overnight on Wednesday, the "mini non-farm" data in the United States added signs of economic weakness, enhancing expectations of a rate cut by the Federal Reserve within the year. The yield on US Treasury bonds fell, and US tech stocks surged. NVIDIA's stock price hit a record high, soaring over 5% at one point, driving its market value to break through the $3 trillion mark for the first time, making it the third company to surpass a market value of $3 trillion after Apple and Microsoft. NVIDIA's market value has surpassed Apple's, becoming the second largest listed company in the US stock market after Microsoft.
As a leader in AI, NVIDIA's stock price has significantly accelerated since the release of ChatGPT by OpenAI at the end of 2022. So far this year, NVIDIA's stock price has risen by over 150%, around 200% last year, and over 3300% in the past five years, far exceeding the growth of the Nasdaq index during the same period.
This week, NVIDIA's stock price surged thanks to the statement made by the company's CEO, Jensen Huang, at an industry conference last weekend. He announced that the company plans to launch a high-performance version of the Blackwell chip called Blackwell Ultra in 2025, and introduce a new AI chip platform called Rubin in 2026, with the Ultra version of Rubin set to debut in 2027. As a top supplier of AI chips and integrated software, NVIDIA's products are widely used by many tech giants such as Amazon, Google, Meta, Microsoft, Tesla, etc., to support their cloud AI products as well as their own AI models and services.
Furthermore, in the recent impressive Q1 financial report, NVIDIA achieved an adjusted earnings per share of $6.12 and revenue of $26 billion, representing significant growth of 461% and 262% respectively compared to the same period last year. The data center business saw a 427% year-on-year revenue growth in the previous quarter, reaching $22.6 billion, accounting for 86% of the company's total revenue. NVIDIA's gaming business also generated $2.6 billion in revenue.
At the same time, NVIDIA announced two important financial decisions, namely a 10-for-1 stock split to be implemented on June 7th, and an increase in the dividend per share from $0.04 to $0.10.
However, NVIDIA does have competitors in the AI chip market. AMD and Intel are actively developing their own AI chips to gain an advantage in the competition. AMD announced that its MI325X and MI350 chips will be launched in 2024 and 2025 respectively, with the next generation MI400 AI accelerator platform expected to be released in 2026. Intel claims that its Gaudi 2 and Gaudi 3 AI accelerators will be more competitive in terms of pricing In addition, NVIDIA is also facing competition from its customers. Companies such as Amazon, Google, and Microsoft are working hard to reduce their reliance on NVIDIA chips in order to achieve cost savings in capital expenditures