Nvidia turns into globe`s second-most-treasured firm
Date
6/13/2024 5:54:31 AM
(MENAFN) Nvidia, the renowned American chip giant, achieved a historic milestone by surpassing Apple to become the world's second-most-valuable company on Wednesday. This significant rise in valuation saw Nvidia's market capitalization exceeding the USD3 trillion mark, a testament to its pivotal role in the semiconductor industry and the broader technology sector.
Traditionally dominated by Apple since the advent of the iPhone in 2007, Silicon Valley witnessed a notable shift as Nvidia's market value surged ahead. Reuters highlighted this pivotal moment, underscoring Nvidia's ascent in the global corporate hierarchy.
At the close of trading on Wednesday, Nvidia's stock price soared by 5.2percent, reaching over USD1,224 per share, which valued the company at USD3.012 trillion. Meanwhile, Apple, with a market capitalization of USD3.003 trillion on the same day, narrowly trailed Nvidia. Subsequently, both companies experienced minor declines in share prices on Thursday, consolidating their market capitalization at approximately USD2.98 trillion each. Despite this, Microsoft retained its position as the world's most-valuable company with a valuation of USD3.16 trillion as of Thursday.
Nvidia's remarkable surge has been attributed partly to its announcement of a ten-for-one stock split, a move aimed at making its shares more accessible to individual investors. This strategic decision is expected to increase Nvidia's liquidity and broaden its investor base, capitalizing on the growing interest in its shares.
Jake Dollarhide from Longbow Asset Management noted that Nvidia's profitability in the artificial intelligence (AI) sector, coupled with substantial investments from tech giants like Apple and Meta, contributed significantly to its market performance. He suggested that Nvidia's trajectory could potentially lead to surpassing even Microsoft in market valuation, highlighting the company's strategic positioning in the technology and AI-driven markets.
As Nvidia continues to expand its footprint in cutting-edge technologies and innovations, its rise to become the world's second-most-valuable company underscores its pivotal role in shaping the future of the global semiconductor industry and its broader implications for the technology sector at large.
MENAFN13062024000045015687ID1108328271
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.