The technology company’s shares soared by 5.16% and closed the day with a market capitalization of over US$3 billion.
The Taiwanese firm is up 147% this year and is a market sensation.
It has displaced the technological giants and is now targeting the company created by Bill Gates, the most valuable in the world.
Nvidia is the company that is benefiting the most from the advance of Artificial Intelligence (AI) The manufacturer of chips used in data centers and the development of chatbots such as ChatGPT has earned a place in the exclusive club of the most important technology companies surpassing its main competitors, the American Intel and the Chinese Huawei two giants that this player who was born 31 years ago in Santa Clara, California, is already looking down on.
And it’s going for more: on Wednesday, it became the second most valuable company in the world and the largest in the United States by market capitalization, reaching a record market value of more than US$3 trillion for the first time with its shares trading at historic highs, it displaced Apple from second place and seeks to dethrone Microsoft which has the highest market value.
After the crash, the Silicon Valley firm closed the day with a market value of US$3.012 billion, compared to Apple’s US$3.003 billion Meanwhile, Microsoft remains in the lead, with a market capitalization of US$3.151 billion.
Nvidia shares – which own around 80% of the market share – shot up 5.16% on the day a rise that consolidates the rally they have experienced in the last six months, with an increase of 162.77%, and which has accelerated in recent weeks, since it presented its financial results for the first quarter in May, with an increase of 36.97% in the last month and 8.31% in the last week.
Nvidia’s explosive growth
Nvidia is experiencing unprecedented growth in its three-decade history. In its latest financial report, it reported sales of US$28 billion in the last quarter, more than three times the same period last year and higher than its original forecast of US$26.8 billion.
Its CEO, Jensen Huang 61, defined the phenomenon as “ the beginning of a new industrial revolution ” and predicted that “ we are in the first year of a decade-long cycle of diffusion of this technology in all industries.” “Nobody has ever mass-produced supercomputers,” he said about the offer of chips that are also used for gaming and autonomous cars such as Tesla’s.
The upward trend gained strength in the last year and a half exceeding its own and analysts’ expectations, due to the increased demand for its specialized components in AI processes with annual revenues of US$ 60.9 billion, a year-on-year increase of 126% (versus the US$ 26,974 it had reached).
To attract investors and continue growing, Nvidia will conduct a 10:1 stock split scheduled for June 7 after the market closes, with each share priced at one-tenth of the current price. In addition to announcing this event, the firm revealed that it will increase its quarterly dividend by 150%, from $0.04 per share to $0.10.
Top 20 most valuable companies in the world
Behind the top three, Microsoft, Nvidia, and Apple, comes Alphabet, with a market value of US$2.179 trillion. The US-based multinational, whose main subsidiary is Google, develops products and services related to software, electronic devices, and other technologies.
In fifth place, the e-commerce giant Amazon closed the day with a market capitalization of US$1.887 billion, followed by the Saudi oil company Saudi Aramco, headquartered in Dhahran and dedicated to the exploitation of oil, gas, and petrochemical products, with a market value of US$1.816 billion.
Seventh is Meta Platforms, Mark Zuckerberg’s conglomerate that owns WhatsApp, Facebook, and Instagram, with US$1.256 billion. Eighth is Berkshire Hathaway the holding company of investor Warren Buffett with stakes in 42 companies, including Apple, Bank of America, American Express, Coca-Colaandnd Chevron, with US$885.896 billion. The list of the top 10 is completed by the American pharmaceutical company Eli Lilly, with US$790.509 billion, and the Taiwanese semiconductor manufacturer Taiwan Semiconductor Manufacturing with US$671.998 billion.
Outside the top 10, in 11th place was Broadcom US infrastructure software and semiconductor firm, with US$654.856 billion followed in 12th place by the Danish healthcare company Novo Nordisk Pharmawithh US$604.910 billion. In 13th and 14th place respectively were JP Morgan & Ch the largest bank in the United States and one of the largest financial companies in the world, with US$ 566.465 billion, and the electric car manufacturer Teslowner Elonon Musk, withUS$558.109 billion . Meanwhile in 15th place was is, with U$549.274 billion.
The top20 is completed by the American supermarket chain Walmart , with US$540,732 mil in 16th place; the oil company ExxonMobisfromm the United States, with US$ 507,448 million, in 17th place; while in 18th place is the health premium insurer UnitedHealth withithh US$ 463,064 million and in 19th place is the Chinese technology company Tencent Holdings with US$ 450,179 million. MMastercardcloses the ranking, with US$ 415,222 million.
