Nvidia’s stock (NVDA) dipped slightly in early trading on Thursday after reaching a milestone market capitalization of over $3 trillion for the first time. The stock opened at $1,240.09 per share before experiencing a 0.4% decrease. The company surpassed Apple to become the second most valuable company on the US stock market, with Microsoft (MSFT) currently holding the top spot.
Investor enthusiasm for artificial intelligence has been a driving force behind Nvidia’s success, especially following the launch of OpenAI’s ChatGPT in late 2022. The stock has seen significant gains, rising over 140% this year, 200% in the past year, and over 3,300% in the last five years. This surge has outpaced the Nasdaq’s more modest gains during the same periods.
Nvidia’s CEO, Jensen Huang, recently announced plans for new high-power chip versions, including Blackwell Ultra in 2025, Rubin in 2026, and an Ultra version of Rubin in 2027. The company has established itself as a leading supplier for AI chips and embedded software, catering to tech giants like Amazon, Google, and Microsoft.
In the first quarter, Nvidia reported a significant increase in adjusted earnings per share and revenue compared to the same period last year. The data center segment accounted for 86% of the company’s total revenue, while the gaming segment posted $2.6 billion in revenue. Nvidia also revealed plans to split its stock 10 for 1 and raise its dividend.
Despite Nvidia’s dominance in the AI space, competitors like AMD and Intel are working on developing their own AI chips to challenge Nvidia’s position. AMD announced upcoming products for 2024 and beyond, while Intel is focused on offering competitive prices with its Gaudi 2 and Gaudi 3 AI accelerators.
As Nvidia faces increased competition from its own customers looking to reduce reliance on its chips, the company remains a key player in the AI industry. Its continued success and market position suggest that Nvidia will remain a significant force in the tech market in the foreseeable future.
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