Nvidia shares rose to another record high, closing Monday at $138.07, putting it on track to become the world’s most valuable company again.
Per CNBCNvidia had dropped a few places to make way for the old leaders Apple and Microsoft, after a very short period in pole position. However, the chip maker has now overtaken Microsoft again and set its sights on the iPhone maker from Cupertino.
With a market cap of $3.386 trillion, Nvidia is one of only three companies to have surpassed its $3 trillion valuation.
Nvidia becomes the most valuable company… again
Nvidia’s early entry into the artificial intelligence (AI) chip market has allowed it to become a dominant player in the ongoing AI race, with major tech companies and market cap rivals such as Microsoft, Google, Meta and Amazon buying its processors to boost their to support growing AI. infrastructure.
Nvidia shares are up 186.6% so far this year, and up a whopping 2,800.6% over five years. Much of Nvidia’s success can be attributed to ChatGPT’s public preview launch in November 2022, which fueled widespread interest and adoption of the technology.
In 12 months, Nvidia has more than doubled its quarterly revenue to $30 billion thanks to its 95% share of the AI chip market. However, this is a large range compared to Apple’s most recent quarterly revenue of $85.8 billion.
Additionally, Nvidia’s upcoming Blackwell chips could further boost sales as companies look for more powerful components to future-proof their infrastructure, which analysts predict could reach nearly $33 billion this quarter. If true, this would represent a significant increase of 82% year-over-year.
Despite the outrageous numbers, however, some investors remain cautious that optimism around AI could fade, leaving Nvidia with little to hold on to.