At the opening of trading on 9/7, shares of US chipmaker Nvidia briefly rose over 2%, pushing its market capitalization to $4 trillion. This marks the first time any company worldwide has achieved this milestone.
Currently, the increase has settled to nearly 2%, equating to a market cap of $3.98 trillion.
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Nvidia's share price has increased more than 15 times in the past five years. Chart: Google Finance
Nvidia reclaimed the title of the world's most valuable company from Microsoft earlier last month. Microsoft is also currently Nvidia's largest and most important customer. Previously, both Microsoft and Apple reached the $3 trillion market cap milestone before Nvidia. The US chipmaker hit $2 trillion in 2/2024 and $3 trillion in 6/2024.
Investors are actively buying shares of the American AI chipmaker. In the past month, the stock has risen by over 15%. Over the past five years, it has increased more than 15 times.
Nvidia is currently the leader in graphics processing units (GPUs), which are used in large language models and AI processing tasks. However, the sharp rise in its stock price this year remains surprising, given the company's limited revenue from the world's second-largest economy.
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Nvidia logo at Computex 2024 in Taiwan in 6/2024. Photo: Khuong Nha
In April, Nvidia was essentially banned from selling its H20 chip in China, despite the product being developed to meet previous regulations. The Donald Trump administration also planned to eliminate an export licensing mechanism. Nvidia stated these policy changes would cost the company $8 billion in revenue and force it to write off $4.5 billion in inventory.
Despite this, in its first-quarter financial report released in May, Nvidia reported a 69% increase in revenue compared to the same period last year, mainly due to a 73% increase in its data center segment. According to LSEG, analysts predict the company's full-year revenue will increase by 53% to nearly $200 billion. At the annual general meeting on 26/6, Huang stated that in addition to AI, robotics would also be a major growth opportunity for the company.
Ha Thu (via Reuters)
