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Marrakech – Computer chip giant Nvidia’s market value surged past $3 trillion on Wednesday, propelling it ahead of Apple to become the second most valuable publicly listed company globally.
Nvidia’s share price jumped over 5%, soaring to more than $1,224, as reported by the BBC.
Exhibiting a breathtaking climb that began last year, Nvidia’s market value surge was driven by the expectations that the US firm will majorly benefit from the surge in artificial intelligence (AI) investments.
Nvidia’s rise has been astonishing, as it is now trailing only Microsoft, another AI powerhouse, thanks to its investments in ChatGPT-maker OpenAI.
In February, Nvidia was valued at “just” $2 trillion, but a wave of share purchases was sparked last month when the company announced plans for a stock split.
This move will increase the number of shares by a factor of 10, reducing their individual value to make them more affordable for small-time investors.
Come Friday, Nvidia’s planned stock split is expected to generate a surge in demand, further fueling its meteoric rise.
Founded in 1993, Nvidia initially made a name for itself with graphics processing chips, especially for computer games.
However, long before the AI boom, the company began adding machine learning features to its chips, boosting its market share and positioning itself as a pivotal player in the AI revolution.
Now, Nvidia is seen as a key indicator of how quickly AI-powered technology is spreading through the business world. CEO Jensen Huang has even declared this shift the “next industrial revolution.”
The company’s explosive growth is evident, with sales reaching $26 billion in the three months to April 28; more than triple the same period in 2023 and up 18% from the previous quarter.
