Nvidia has made a remarkable leap in the stock market, overtaking Apple as the world’s second most valuable company with a market capitalization of $3 trillion. The company’s stock has soared 145% in 2024 alone, driven by its AI chip dominance and strategic moves, including a 10-for-1 stock split scheduled for June 7, which is anticipated to further attract individual investors. Nvidia’s rapid climb is also fueled by the insatiable demand for its semiconductors used in artificial intelligence applications, with the company’s revenue more than tripling in the latest quarter and net margins estimated at 53.4% . Analysts are optimistic about Nvidia’s growth potential, with Bank of America raising its price target to $1,500 . In a bold move, Elon Musk’s xAI has secured 12,000 GPUs from Nvidia, which were initially designated for Tesla, to aid in developing a super-AI. This exchange has sparked concerns among Tesla investors about the company’s future AI developments for self-driving cars and autonomous robots. xAI’s ambitions extend to building a supercomputer and developing the Grok AI chatbot, with plans to utilize user content from Twitter for AI model training. As Nvidia and Apple continue their race towards a $3 billion market value, with both companies facing potential stock corrections, InvestingPro’s AI-driven ProPicks strategy has highlighted them as top picks. As the AI sector experiences this unprecedented rally, the industry’s focus remains on the impact of these developments on future technology and autonomous systems. Nvidia’s ascendancy to a $3 trillion market cap underscores the company’s integral role in the burgeoning AI revolution and sets the stage for its further expansion in the AI landscape .
Key points
- Nvidia’s market value has soared to $3 trillion, surpassing Apple as the second most valuable company in the world.
- Elon Musk’s xAI has acquired 12,000 GPUs from Nvidia, raising concerns among Tesla investors regarding the company’s AI initiatives.
- Nvidia is set for a 10-for-1 stock split on June 7, potentially making its shares more appealing to individual investors.
- Analysts are optimistic about Nvidia’s growth, with Bank of America raising its price target to $1,500.
