On June 19th, AI chip giant NVIDIA's market value ranked first in the world, once again setting a new milestone in market value.
At the close of June 18th Eastern Time, Nvidia's stock price was $135.58, with a total market value of $3.335 trillion, surpassing Microsoft ($331.7 million) and Apple ($328.6 million) in one fell swoop.
In terms of market value alone, currently all three tech giants are around 3.3 trillion yuan, on par. In fact, since the beginning of this year, the stock prices of the three giants have been rising steadily, but Nvidia has seen an astonishing increase. In March, it was still around $2.3 trillion, and by June, it had skyrocketed by $1 trillion, becoming the world's largest company.
A year ago, Nvidia's market value had not yet reached $1 trillion, lagging behind tech giants such as Google's parent company Alphabet, Amazon, Apple, and Microsoft. However, on June 13, 2023, Nvidia's market value exceeded $1 trillion for the first time; By February 23, 2024, this number had doubled to $2 trillion; In less than four months, on June 5, 2024, Nvidia's market value once again exceeded the $3 trillion mark, setting multiple growth records.
Subsequently, Nvidia reached a new high on June 6th, surpassing Apple to become the world's most valuable technology company. Although Apple announced major news such as entering the field of artificial intelligence at the Global Developers Conference, causing its stock price to briefly soar, Nvidia still maintains its leading position. This series of changes in market value not only reflects investors' expectations for the future development of technology giants, but also demonstrates the fierce competition and rapid changes in the technology industry.
In recent years, the rapid development of AI technology has sparked a strong demand in the market for high-performance AI chips. NVIDIA has become a leader in this field with the power of GPUs, occupying over 80% of the AI chip market share. Recently, it has also launched a new generation of chips to expand its data center business. At the same time, Nvidia released a second quarter revenue forecast that exceeded market expectations this year and announced a stock split of 10 shares per share.
Nvidia's first quarter performance for the fiscal year 2025 also exceeded expectations, with data center business revenue reaching $22.6 billion, an increase of 427% compared to the same period last year; The total revenue was 26.04 billion US dollars, an increase of 262%; The net profit reached 14.88 billion US dollars, a year-on-year increase of 628%.
This series of positive news has further boosted market confidence, attracting a large number of investors to buy and driving its stock price to record highs. Since the beginning of the year, Nvidia's stock price has risen by more than 170%, and in 2023, it led the S&P 500 index with a growth rate of 238.9%.
After NVIDIA completed a 10/1 split on June 10th, Rosenblatt Securities analyst Hans Mosesmann even boldly predicted that NVIDIA would continue to rise in the next year, with a market value expected to reach nearly $5 trillion. Mosesmann also raised Nvidia's target price from $140 to $200.
In addition, on June 17th, NVIDIA CEO Huang Renxun sold NVIDIA stocks for the first time in nine months. According to regulatory documents, Huang Renxun cashed out $31.2 million through a series of internal transactions and sold 240000 shares between June 13th and 14th. However, as of March 25, 2024, Huang Renxun still holds nearly 93.5 million shares of NVIDIA stock, accounting for 3.8% of the company's total share capital.
Other executives, including Dawn Hudson, Tenth Coxe, John Dabiri, Michael McCaffery, Brooke Seawell, and Mark Stevens, have also sold varying amounts of Nvidia stock in recent weeks.
Nvidia quickly became a new hegemon, creating history while also having a profound impact on the entire technology industry. With the continuous progress and penetration of artificial intelligence technology into various fields, the demand for high-performance computing solutions may continue to remain strong.
Shu Di, chief electronic analyst of Guotai Jun'an Research Institute, told the 21st Century Business Herald reporter: "The change of the company's market value is essentially the product of the era. Apple is the king of the previous era, that is, the mobile Internet era, and Nvidia basically represents the most competitive company in the AI era. Therefore, the change of market value is essentially the evolution of the era."