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$3 trillion was minted. Historical company valuation powered by artificial intelligence

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Nvidia's market value has exceeded $3 trillion, making the chipmaker overtake Apple to become the second most valuable publicly traded company in the world. Its market value now ranks just behind Microsoft, another key player in the artificial intelligence industry, thanks to its investment in OpenAI, the creator of Chat GPT.

The value of Nvidia, a manufacturer of chips that are in huge demand due to the development of artificial intelligence, has reached over $3 billion. The price per share in Wednesday's quotations on Wall Street increased by over 5%. and one is currently valued at $1,224.

As the BBC notes, “this extended the breathtaking rapid ascent that began last year, fueled by bets that the company would become a major winner in the wave of artificial intelligence investment.”

Currently, Nvidia is just behind Microsoft, which is also a key player in the AI ​​market thanks to its investment in OpenAI – the creator of ChatGPT. Back in February, Nvidia was valued at “only” $2 trillion, but after last month the company announced plans for the so-called following the division of shares, another “wave of purchases” appeared.

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A stock split will increase the number of shares by a factor of ten and reduce their value accordingly, intended to make them more affordable for small investors. It is scheduled to take place on Friday and is expected to generate even more demand.

Nvidia's path to success

Founded in 1993, Nvidia was originally known for producing graphics processing computer chips, particularly for computer games.

As the BBC points out, long before the artificial intelligence revolution, the company began adding features to its chips that it said would help with machine learning – all of which helped it increase its market share. It is now seen as a key company to watch to see how quickly AI-powered technology spreads across the business world, with CEO Jensen Huang declaring the beginning of the “next industrial revolution.”

His company has seen explosive growth, reporting sales of $26 billion in the three months to April 28 – more than tripling compared to the same period in 2023 and up 18%. more than in the previous three months.

The AI ​​craze is driving market growth

The British public broadcaster's website points to artificial intelligence optimism as one of the forces behind the broader market rally last year, which pushed the S&P 500 and Nasdaq indexes in the United States to new records on Wednesday.

It noted that earlier this year, it appeared that Apple would suffer losses as sales growth stalled. However, the company's shares have been rising in recent weeks on anticipation of its plan to incorporate artificial intelligence into its own strategy. The company's shares rose 0.7%, giving it a market capitalization of about $3 trillion, which is typically calculated by multiplying a company's number of shares outstanding by its current share price.

Main photo source: Shutterstock

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