- The shares of Nvidia surged to $3.6 trillion following Trump’s election victory
- The chipmaker maintains its lead on the three-trillion-dollar ladder
- Nvidia has been on a streak since hitting $1 trillion capitalisation last year
The shares of Nvidia, which recently surpassed Apple to become the world’s most valuable company at $3.53 trillion, reached a record high of $3.6 trillion on Thursday night following Donald Trump’s return to the White House.
The shares of the Artificial Intelligence (AI) chipmaker rose to 2.2 per cent, driven by broad investor optimism about tax cuts and lower regulations after Trump’s election victory on Tuesday.
At the stock market, Nvidia’s stock value ended the day at $3.65 trillion, which is $8 billion higher than Apple’s record closing market capitalisation of $3.57 trillion reached on October 21, before the chipmaker overtook the iPhone maker as the world’s most valuable company on Tuesday, according to LSEG data.
Apple’s stock rose 2.1 per cent on Thursday with a market value of $3.44 trillion as the S&P 500 technology index had surged over four per cent in the two sessions since Trump won the election on Tuesday.
The three-trillion-dollar capitalisation race
The trio of Nvidia, Apple and Microsoft has been neck-to-neck in the race to being the highest three-trillion-dollar-worth company.
Nvidia however has been the US stock market’s biggest winner among the trio and other heavyweights aiming to build out their AI computing capacity and dominate the emerging technology.
The chipmaker’s stock has increased by 12 per cent in November, with its value tripling so far in 2024.
The company has been on a streak this year with its stock now exceeding the combined value of Eli Lilly, Walmart, JPMorgan, Visa, United Health Group and Netflix.
Investors are already anticipatory ahead of the company’s third-quarter results on November 20, with projected revenue of about $32.5 billion below market expectations of $32.9 billion.
Nvidia has been making giant strides
On June 18, 2024, Nvidia reached $3.334 trillion and briefly becoming the most valuable company in the S&P 500 before it was overtaken by Microsoft and Apple. The chipmaker only crossed the $1 trillion mark in 2023.
The company’s investment in chips or semiconductors used to power many AI applications has boosted its revenue.
In the fourth quarter of 2023, Nvidia recorded $22.1 billion in revenue, which was $1.7 billion of projected revenue.
For the year ended March 31, 2024, Nvidia’s revenue reached $60.9 billion, which is a 126 per cent growth from the figures recorded in the previous year.
Nvidia also recorded a 681 per cent growth in its operating income to $33 billion, which represents an operating margin of 54.2 per cent.
The company’s financial performance in the fiscal year was driven by a 217 per cent growth in its data centre revenue. It also recorded $47.5 billion from the sales of GPUs and InfiniBand used in data centres.
Meet Jensen Huang, CEO of Nvidia, the world’s most valuable company
Meanwhile, TheRadar reported that Nvidia recently surpassed Apple as the world’s most valuable company and currently leads the world’s three-trillion-dollar-worth companies which include Apple, Microsoft and Amazon.
Behind the strides recorded by Nvidia is 61-year-old, Jensen Huang, who founded the company in 1993 and has served as its president, Chief Executive Officer and a member of the board of directors since inception.
