Nvidia is moving like a battering ram. It has just surpassed Apple and joined the three trillion club

Nvidia is benefiting from the boom in artificial intelligence (AI) and the great enthusiasm of investors. On Wednesday, the stock of this major manufacturer of AI microprocessors rose by 5.2%.

Nvidia with crazy stock growth. Apple defeated

This resulted in two things, symbolically significant for Nvidia. Firstly, it entered the exclusive club of companies with capitalization (i.e. market value of shares) exceeding USD 3 trillion. At the close of trading on Wall Street, it was exactly $3.019 trillion. Secondly, at the same time, it has surpassed Apple in this respect, whose capitalization is currently at the level of $3.003 trillion. And this company was the first in history to break first $1 trillion and then $2 trillion in market value.

Nvidia has become the second most valuable publicly traded company in the United States – surpassed only by Microsoft with $3.15 trillion. Of course, these differences are so small that the order of the ranking may change quite quickly. Nevertheless, Nvidia managed to jump into it for the first time.

“Nvidia is currently making money on artificial intelligence, and companies like Apple and Meta are spending money on it,” said Jake Dollarhide, CEO of Longbow Asset Management.

Success after success, and then a split

So far this year (since the beginning of January), Nvidia’s shares have risen 147% on the stock exchange, while Apple has gained 1.7%. The chipmaker’s results beat expectations. Revenues in the first quarter increased by 262%. year on year, to USD 26 billion, including the revenues of the department producing AI chips increased by as much as 427%, to USD 22.6 billion. “A new industrial revolution has begun. Enterprises and countries are working with Nvidia to turn trillion-dollar traditional data centers into a new type of data center offering faster data processing – AI factories. All this to create a new commodity: artificial intelligence,” he wrote then CEO Jensen Huang in a letter to shareholders.

Two weeks later, Nvidia I, which it called “Ruby”. It did so just a few weeks after unveiling the “Blackwell” chips. Jensen Huang announced that new microprocessors will appear every year.

Now Nvidia is facing another important market process. After the end of Friday’s trading session, the company will conduct the so-called split of shares, i.e. their division, in a ratio of 10:1. The “new” shares will start trading on Monday, earlier, trading in Nvidia will be suspended on Friday. The split means the valuation of one share is reduced by one tenth (currently from about $1,160 to $116). This means that the securities will become more available (because cheaper) for investors, and that is basically what this procedure is about. Anyone who holds Nvidia shares at the end of Thursday’s trading on Wall Street will have the right to take part in the split, i.e. they will receive nine additional shares for each of their shares.