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Nvidia Becomes the Second Most Valuable U.S. Company

Edging out Apple, trailing Microsoft.
Emily Hill
Contributing Writer
Nvidia Corporation, entreprise qui conçoit des processeurs graphiques, de cartes graphiques et de puces graphiques pour PC et consoles de jeux et impliquée dans l'IA.

Nvidia (NASDAQ: NVDA) has reached a market capitalization exceeding $3 trillion, surpassing Apple to become the second-largest company in the U.S. stock market. This achievement is seen as a significant milestone for the company and has been attributed to its focus on AI and high-performance computing

Over the past year, Nvidia’s stock has reportedly soared by over 140%, influenced by increased demand for its AI hardware, which is critical for training and deploying AI models. Recently, shares climbed 5% to a record high of $1,224.40.

Several factors have been cited as contributing to Nvidia’s growth. The AI boom, notably accelerated by developments such as OpenAI’s ChatGPT, has been closely linked to their success. Nvidia’s Data Center revenue reportedly surged 427% year-over-year, contributing $22.6 billion, which accounts for 86% of the company’s total revenue for the latest quarter. Upcoming products like the Blackwell Ultra chip and the Rubin AI chip platform are expected to keep Nvidia competitive.

Despite the company’s strong market position, competition appears to be intensifying. AMD and Intel are advancing their AI chip offerings, while tech giants like Amazon, Google, and Microsoft are reportedly developing in-house solutions to reduce reliance on Nvidia.

Financial Performance and Strategic Moves

Nvidia’s financial performance has been reportedly strong. In the latest quarter, the company announced adjusted earnings per share of $6.12 on revenue of $26 billion, which were significant increases from the previous year.

This strong financial performance has not only propelled Nvidia to new heights but also positively impacted the broader tech market. They also announced a 10-for-1 stock split and a dividend increase from $0.04 to $0.10 per share.

Future Challenges and Innovations

While Nvidia’s current trajectory appears impressive, the company could face several challenges moving forward. Sustaining its momentum may require continuous innovation amidst fierce competition and addressing potential supply chain constraints that could impact production.

Nvidia’s commitment to annual advancements in its semiconductor technology is reflected in the planned introduction of the Rubin Ultra AI chip in 2027. Maintaining its competitive edge may involve strategic collaborations and possibly acquisitions to bolster its technological capabilities and market presence.

The Wrap

Nvidia’s rise to a $3 trillion market cap, surpassing Apple, marks a notable milestone in the tech industry. Driven by its leadership in AI and data center technologies, Nvidia is positioned as a key player in the digital revolution.

However, as the competitive landscape evolves, Nvidia’s continued success will likely depend on its ability to innovate and adapt to new challenges and opportunities in AI and high-performance computing.

Go Deeper -> Nvidia closes above $3 trillion for first time, overtakes Apple as second-largest co. in US market – Yahoo Finance

Nvidia topples Apple with $3 trillion market cap; 10-for-1 stock split ahead – Fox Business

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