Nvidia’s market value has surged past $3 trillion (£2.3 trillion), propelling the chip giant ahead of Apple to become the second most valuable publicly listed company in the world.
On Wednesday, the firm’s share price climbed over 5% to exceed $1,224.
This rise continues a rapid ascent that began last year, fueled by expectations that the US firm will be a major beneficiary of the wave of investment in artificial intelligence (AI).
Nvidia’s market value now sits just behind Microsoft, another key industry player due to its investments in ChatGPT-maker OpenAI.
Valued at “just” $2 trillion as recently as February, Nvidia ignited a new surge in share purchases after announcing plans last month for a stock split.
The stock split, which will increase the number of shares by a factor of 10 and reduce their individual value, aims to make shares more affordable for small investors.
Set to take place on Friday, this move is expected to generate even more demand for the stock.
Founded in 1993, Nvidia initially gained recognition for producing computer chips that process graphics, particularly for video games.
Well before the AI boom, Nvidia began incorporating features into its chips to enhance machine learning capabilities, helping it expand its market share.
Today, Nvidia is considered a key company to watch for insights on how quickly AI-powered technology is permeating the business world. CEO Jensen Huang has referred to this shift as the dawn of the “next industrial revolution.”
The company has experienced explosive growth, reporting sales of $26 billion in the three months leading up to April 28, more than triple the same period in 2023 and up 18% from the previous quarter.
Optimism about AI is driving a broader market rally, which has pushed the S&P 500 and Nasdaq to new records.
Apple, whose sales growth had stalled earlier this year, has recently seen its shares rise due to anticipation of its AI strategy. Shares in Apple increased by 0.7%, giving it a market capitalization of approximately $3 trillion.
Market capitalization is typically calculated by multiplying the number of a company’s shares by its current share price.