Nvidia’s stock soared 5% to $1,224.40 on Wednesday, catapulting its market cap above $3 trillion for the first time.
This milestone comes as investors eagerly seek a stake in the company driving the boom in generative artificial intelligence. Surpassing Apple, Nvidia is now the second-largest public company, trailing only Microsoft.
This achievement caps a remarkable run for Nvidia, which has seen its stock surge by over 3,224% in the past five years. The company is set to split its stock 10-for-1 later this month.
Founded in 1993, Nvidia reached a $2 trillion valuation in February, then swiftly surpassed the $3 trillion mark in approximately three months.
In May, the company reported first-quarter earnings that far exceeded expectations, with sales reaching $26 billion, more than triple the previous year’s figure. Nvidia anticipates revenue of around $28 billion in the current quarter.
Nvidia’s success is underpinned by the tech industry’s increasing reliance on its GPUs for developing and deploying large AI models, including those powering applications like OpenAI’s ChatGPT.
Major tech players such as Google, Microsoft, Meta, Amazon, and OpenAI are collectively investing billions of dollars in Nvidia’s GPUs, highlighting their pivotal role in the technology world.
