Date:
June 19, 2024
NVIDIA’s shares on Tuesday skyrocketed by over 3%, increasing the price to $135.58. This surged NVIDIA’s market value to $3.335 trillion, an overall increase of $110 billion.
NVIDIA’s shares on Tuesday skyrocketed by over 3%, increasing the price to $135.58. This surged NVIDIA’s market value to $3.335 trillion, an overall increase of $110 billion.
NVIDIA’s contribution to the AI wave and the staggering demand for its semiconductors has given the company a significant boost, adding $2 trillion to its market cap in 2024 itself. That’s a rise of 160% within the same year.
NVIDA’s dominance over Apple has become possible for the first time in more than two decades in early June. Post that, there has been a constant race between both tech giants to take over the throne. Apple has also briefly taken over its other giant competitor, Microsoft, in a close call.
What’s Fueling NVIDIA’s Rapid Growth in the Tech World?
According to Bloomberg, “The ranking is yet another reminder that AI is the top focus of many investors. NVIDIA is seen as the biggest and earliest beneficiary of the technology as it dominates the market with its highly sought-after chips that help power data centers running complex computing tasks required by AI applications. Demand for its H100 accelerators are surging and helped drive the chip maker's sales up by more than 125% last year.”
For investors, AI is the paramount guiding their investing decisions. The technology has helped NVIDIA’s value surge from a whopping $2 trillion to $3 trillion in just 96 days. Moving ahead, it is going to fuel a race between Apple, NVIDIA, and Microsoft for a $4 trillion market cap in the tech sector.
Michael Lipper, vice president and portfolio manager at Baron Capital Inc., in a conversation with Bloomberg, also highlighted the importance of NVIDIA’s development ecosystem in the advancements in the IT industry.
