Nvidia (NASDAQ: NVDA), the semiconductor giant, has achieved a historic milestone. For the first time, its stock price surpassed $1,200. Moreover, the company’s market capitalization has skyrocketed to an astonishing $2.95 trillion, just 3% away from dethroning Apple (NASDAQ: AAPL) as the world’s most valuable public company.
As of this writing, the NVDA stock trades at $1,198.48 per share, up 1.56% in the last 24 hours.
In 2024 alone, Nvidia has added a staggering $1.8 trillion to its market cap. This is more than three times Tesla’s (NASDAQ: TSLA) entire market value. Additionally, Nvidia’s year-to-date market cap gains surpass the combined market caps of Walmart, Tesla, and JP Morgan.
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NVDA stock reached a new all-time high value on June 5, as The Kobeissi Letter broke in a post on X.
Nvidia’s success with the AI revolution among tech stocks
Nvidia‘s success can be attributed to its pivotal role in the artificial intelligence (AI) revolution. Virtually all AI applications rely on its high-end chips. Consequently, the company has become the biggest beneficiary of the surge in AI adoption, with its stock nearly tripling in value over the past year.
In contrast, Apple has recently ceded its top spot to Microsoft, as the iPhone maker grapples with weak demand and intense competition in China. Experts suggest that while Apple’s innovation curve seems to have flattened, Nvidia has consistently caught wave upon wave of growth, from gaming to crypto and now AI.
Nvidia’s dominance has significantly impacted the S&P 500 and Nasdaq, accounting for more than a third of the S&P 500’s gains this year. Furthermore, the company became the fastest to grow from $1 trillion to $2 trillion in 2024, surpassing tech giants like Amazon, Alphabet, and Saudi Aramco.
The company’s consistent ability to exceed Wall Street’s expectations for revenue and profit has led to a fall in its forward earnings valuation despite the soaring share price. Nvidia’s popularity extends to the derivatives market, with the GraniteShares 2x Long NVDA Daily ETF (NVDL.O) becoming the largest single-stock exchange-traded fund (ETF).
As a global leader in AI computing, Nvidia’s innovative technology is at the forefront of the artificial intelligence boom. The company’s GPU (Graphics Processing Unit) and DPU (Data Processing Unit) products are essential for accelerating AI workloads, enabling businesses and researchers to harness the power of AI for various applications, from autonomous vehicles to healthcare and beyond.
With Big Tech rushing to embed AI applications, Nvidia’s cutting-edge solutions are in high demand, driving the company’s explosive growth. As the AI revolution continues to unfold, Nvidia is well-positioned to maintain its leadership position and shape the future of technology.
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