Xinhua Finance and Economics, Beijing, June 20th (Sun Shuo) - The stock price of American chip company NVIDIA hit a new high on June 18th, replacing Microsoft as the world's most valuable company in the market.
NVIDIA's stock price rose 3.5% on the same day, closing at $135.58 per share, pushing the company's market value to $3.335 trillion.
On the 5th of this month, Nvidia's stock price just hit a new high, with a market value exceeding $3 trillion, surpassing Apple Inc. in the United States and becoming the second largest company in the world by market value.
Reuters reported on the 18th that Nvidia's stock price has risen nearly twice this year. In contrast, Microsoft's stock price rose by approximately 19% during the same period.
According to data provided by the Associated Press, as of May this year, Nvidia contributed nearly one-third of the increase in the S&P 500 stock index.
The Associated Press also commented that a few "superstar" stocks have set records for most of the US stock market, indicating that the stock market is more fragile; A healthier stock market is only when more stocks set records.
According to Reuters data, it took 9 months for Nvidia's market value to rise from $1 trillion to $2 trillion, and more than 3 months to rise to $3 trillion.
Analysts believe that Nvidia's impressive market value increase over the past year indicates Wall Street's fervent pursuit of artificial intelligence (AI) as a technological advancement.
Steve Sosnick, Chief Market Strategist at Yingtou Securities Group, said that this is Nvidia's market, and "we are all just trading in this market.".
Nvidia is seen by some investors as the biggest winner since the rise of the AI technology wave due to its AI chip supply shortage. Technology giants such as Microsoft, Facebook's parent company Yuan, and Google's parent company Alphabet are vying to improve their AI computing power, creating a huge demand for Nvidia's AI chips.
Renowned American entrepreneur Elon Musk said last month that his xAI company plans to build supercomputers to enhance the performance of its AI chatbot Grok, which will use up to 100000 Nvidia H100 graphics processor (GPU) computing chips.
Nvidia's revenue typically doubles every quarter. The latest financial report shows that Nvidia's revenue in the previous financial quarter increased by more than twice year-on-year. Analysts predict that Nvidia's revenue for this fiscal year will be approximately twice that of the previous fiscal year. This fiscal year ends in January 2025.
However, some analysts also remind investors to remain a bit calm amidst this frenzy.
Oliver Percy, Senior Vice President of Fortune Tower Consulting, said that Nvidia has received a lot of positive attention for a long time and has handled many things very appropriately. However, any small mistake can lead to a significant drop in Nvidia's stock price, and investors should be careful.
Reuters reported that some investors are concerned that if there are signs of a slowdown in AI investment in the market, people's optimism about AI may disappear.