(Image source from: Twitter.com/nvidia)
US-based Nvidia is now the second most valuable company globally after their share saw the spike of more than five per cent on Wednesday. Now Nvidia is the second most valuable company behind Microsoft. Investors are still betting on the chipmakers because of the AI boom. The share rally started last year after the firm turned out to be the major winner from their investments in Artificial intelligence (AI). On Wednesday, Nvidia had a market share of $ 3.019 trillion, whereas Apple’s market share is $ 2.99 trillion. Microsoft stands first with a market value of $ 3.15 trillion. Nvidia is expected to have an estimated 80 to 95 per cent of market share in AI chips, by which the company is attracting billions of dollars of investors. The company has seen a rise of more than 24 per cent after its first-quarter earnings in May. They had a stunning profit of USD 14 billion as per their latest financial report. Nvidia is the first company in the US market to surpass Amazon and Alphabet in May 2023 and February 2024 by reaching USD 1 trillion and USD 2 trillion market share. The company has recently announced their share split to make it more affordable for small-time investors. The stock split is most likely to happen on the 7th of June, this will attract more investors. Nvidia shares are now trading at USD 1224 per share. The company has seen a 147 per cent growth rate this year and 239 per cent in 2023.
On the flipside, Apple sales have been stalled. The company has seen a drop in iPhone sales by 4 per cent, where the share price has seen a fall of 10 per cent from last year and five per cent up in this year. Apple is facing mixed reactions over its new launch virtual reality headset, Vision Pro. Apple was the first company to reach $ 1 trillion and $ 2 trillion in US market cap. Microsoft has surpassed Apple earlier this year. The rise of Microsoft was because of the investments in AI. Apple needs to work on their innovative plans to show its strong comeback in Nasdaq. Nvidia crossed Apple in 2002, before their launch of the iPhone, where both companies were valued less than USD 10 billion each at that time. Nvidia is expected to see more hikes in their share price by Friday. Chat GPT investments have helped the companies Nvidia and Microsoft big time. Nvidia was founded in 1993, at first they started selling hardware for 3D computer games. Recently it sold cryptocurrency mining chips and cloud subscription services. The company saw the rise and soon it started making changes in the computer chips, which process graphics mainly in computer games.
AI revolution is the main help of Nvidia. The co-founder Jensen Huang has declared Nvidia as the next revolution. The company is expected to launch a new innovative chip Black Well B 200 GPU later this year, which is said to be the world's most powerful AI chip.
