Nvidia Market Cap Crosses $3 Trillion

By Colin Laidley, Investopedia Markets News (all except PF), 2024-06-05

The AI chip maker leapfrogged Apple to become the second most valuable U.S. company on Wednesday

<p>Julie Bang / Investopedia</p>

Julie Bang / Investopedia


Key Takeways

  • Nvidia (NVDA) stock's meteoric rise propelled its market capitalization above $3 trillion and into the position of America's second-most valuable company on Wednesday.
  • Nvidia is the third U.S. company with a market value exceeding $3 trillion. Apple was the first to reach that milestone in 2023 while Microsoft achieved the feat earlier this year.
  • Nvidia's ascent has been the fastest. It went from $2 trillion to $3 trillion in a record 96 calendar days. Microsoft took 649 days to do so, while Apple took 718 days.

Nvidia (NVDA) on Wednesday became America's second-most valuable company and only the third U.S. company to reach a market capitalization of $3 trillion, a major milestone the AI chipmaker has reached in record time.

Nvidia's Historic Surge

Nvidia shares surged 5.2% to $1,224.40 on Wednesday, launching it into the ranks of $3 trillion companies. The only other companies to have ever achieved the feat are Apple, the first to do it, and Microsoft, which is currently the world's most valuable company with a market cap of more than $3.15 trillion.

Nvidia wasn't the first company to $3 trillion, but its ascent has been the steepest. Based on closing valuations, Microsoft took 649 calendar days to rise from $2 trillion to $3 trillion, while Apple took 718 days. Nvidia did it in 96 calendar days.

To be sure, Nvidia's climb has coincided with a bull market, while Apple and Microsoft had to slog through 2022's bear market to add their third trillion. Meanwhile, Nvidia's astronomical growth has, arguably, been instrumental in sustaining today's bull market.

How Did We Get Here?

The chipmaker, once known for its top-of-the-line graphics cards used in gaming PCs, has consistently blown past impossibly high earnings expectations over the last two years amid booming demand for artificial intelligence. In May, it reported that first-quarter revenue tripled from the year before while profit rose sevenfold.

Nvidia has established itself as the clear leader in AI semiconductors, and the company may have extended its lead Sunday when CEO Jensen Huang unveiled its next-generation AI platform. The system, dubbed Rubin, will succeed Nvidia's Blackwell platform, which was unveiled mere months ago, in 2025. Huang also said the company would double the pace at which it develops new chips to keep up with the breakneck speed of AI evolution.

Analysts see plenty of room for Nvidia's earnings and stock to run. Bank of America raised its price target on the stock to $1,500, the highest on Wall Street, following Sunday's announcement. BofA analysts estimated that “converting global data centers to accelerated computing could require $250-$500bn annually and we are only 20-30% into that process that could last another 3-5 years.”

The stock's rise has been meteoric. Shares have more than doubled in value so far this year after tripling last year. But by some measures, shares are cheap. In a separate BofA note on Wednesday, analysts estimated that shares currently trade at less than 1x the company's price/earnings-to-growth ratio (PEG), far below the S&P 500 at about 2x PEG.

Read the original article on Investopedia.

Get Access To Marc Chaikin's "Power Gauge Report"

Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

The AI Stocks Every Investor Should Have On Their Radar

Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email and phone number below to see the stock name and ticker on the next page.



By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email below to see the stock name and ticker on the next page.



By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email below to see the stock name and ticker on the next page.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email address to see the name and ticker on the next page.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

How to Collect "Amazon Royalty" Payouts Before the Deadline

Thanks to a little-known IRS loophole, regular Americans can collect up to $28,544 (or more) in payouts from what is called “Amazon’s secret royalty program”…
Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Elon Musk's "Project Omega"

It could soon mint new millionaires, while plunging millions of unprepared Americans into poverty. Get the stocks at the center of it all.
Enter your email address to receive the names and ticker symbols.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

The #1 Trade For 2023

Elon Musk is set to reveal his secret “Project X” that could revolutionize a $23 Trillion industry, and potentially be 1,000x bigger than EV’s. 
This Backdoor play could hand early investors a windfall of gains.
Enter your email address to receive this company’s name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Every Investor Should Have This $3 AI Stock On Their Radar

Enter your email address to get access to all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Project An-E

Breakthrough A.I. Just Predicted What the Stock Prices of Tesla, Nvidia, and Apple Will Be 30 Days from Now…
Enter your email address for immediate access.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Elon Musk's "Project Omega"

It could soon mint new millionaires, while plunging millions of unprepared Americans into poverty. Get the stocks at the center of it all.
Enter your email address to receive the names and ticker symbols.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 A.I. Stock Currently Trading For $3

Gain immediate access to this revolutionary $3 A.I. stock that is set to disrupt a $15 Trillion Market soar 75X.
Enter your email address to receive the name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 Stock of This Generation

Set to disrupt global industries, this tiny $2 stock could very soon shoot up 150%, 400% … even 900% or more!-
Enter your email address to receive this company’s name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)