On June 5th local time, Nvidia's stock price reached a new high. The closing price surged by over 5%, closing at a new high of $1224, with a market value exceeding $3 trillion and surpassing Apple to become the second largest company in the US stock market.
With the surge of NVIDIA, domestic partners who have technical cooperation and related supply chains with NVIDIA have also gained high market attention, such as server supplier Industrial Fulian, Inspur Information, optical module supplier Zhongji Xuchuang, downstream computing power leasing manufacturer Hongbo Co., Ltd. As of the close on June 6th, Industrial Fulian rose the limit, while Zhongji Xuchuang rose by about 5%. Annuoqi, Shenghong Technology, Oshkon, Jingwang Electronics, Inspur Information and others followed suit.
Market value surpasses Apple
As of the close on June 5th local time, Nvidia's stock price rose 5.16% to $1224.4 per share, with a market value of $3.01 trillion. This is Nvidia's first time breaking the $3 trillion mark, and it has become the third company, following Apple and Microsoft, to achieve this milestone.
Apple's stock price rose 0.78% on the same day, bringing its market value back to $3 trillion. The company achieved this achievement for the first time in July last year. Microsoft's stock price rose 1.91% on the same day, with a market value of $3.15 trillion, still the world's highest company by market value.
Nvidia's market value last surpassed Apple's in 2002, and its first iPhone was released five years later. At that time, the market capitalization of both companies was less than $10 billion. For over a year, Nvidia's profits and stock price have consistently exceeded expectations. The market value increased from $2 trillion to $3 trillion, and Nvidia only took about three months. The stock has accumulated a rise of over 147% this year, and increased by 200% last year. The stock price performance is significantly better than the S&P 500 index and Nasdaq 100 index.
On Monday, analysts at Bank of America raised the target price of the stock again, reaching a Wall Street high of $1500 (22.5% higher than Wednesday's close), stating that Nvidia's growth prospects prove its premium is reasonable.
Many traders on Wall Street believe that Nvidia still lags behind Microsoft in terms of market value, and given the current upward trend in stock prices, it is only a matter of time before Nvidia surpasses Microsoft.
"One Demolition Ten" will take effect on June 7th
The recently released financial report data shows that Nvidia achieved a revenue of $26 billion in the first quarter, an increase of 262% compared to the same period last year. At the same time, Nvidia's "1 spin 10" stock split plan will also take effect on June 7th.
Nvidia has announced a 10 to 1 forward stock split of its issued common shares, which will be achieved by modifying Nvidia's restated company registration certificate, resulting in a proportional increase in the number of authorized common shares. The stock split will take effect from June 7, 2024. After the close of the day, shareholders holding NVIDIA common shares will receive an additional 9 shares, and trading will begin on June 10 on the basis of the split adjustment. On the basis of the split, the quarterly cash dividend increased by 150% to reach $0.01 per share.
In the market, stock split is often a bullish signal for a stock, a feature that has been witnessed in previous stocks such as Apple and Tesla.
Analysis suggests that stock splitting greatly reduces the threshold for investor participation, increases stock liquidity, and can attract more small and medium-sized investors to enter the market. Through this behavior, Nvidia has also conveyed strong growth confidence to the market, further consolidating investor trust in the company.
Guotai Junan Securities released a research report stating that Nvidia has released a new product roadmap, showcasing a full range of Blackwell products, and previewing the Rubin next-generation platform for 26 years. The product will accelerate iteration and continue to drive explosive growth in AI+applications from the supply side. In addition to core chip upgrades, Nvidia will further upgrade and iterate from the system end such as switches, liquid cooling, and copper connections.
Citigroup stated that based on Nvidia's advantages in optimizing GPU computing software, network product portfolio, and excellent hardware, Nvidia's dominant position will continue to be maintained.
A-share "buddies" welcome opportunities
In the domestic market, with the surge of Nvidia, "partners" who have technical cooperation and related supply chains with Nvidia have also received high market attention, such as server suppliers Industrial Fulian, Inspur Information, optical module supplier Zhongji Xuchuang, downstream computing power leasing factory Hongbo Co., Ltd.
Industrial Fulian is currently one of the few A-share manufacturers confirmed to supply Nvidia's new product GB200, and its subsidiary Hongbai Technology is collaborating to develop AI data center liquid coolers.
Inspur Information is one of Nvidia's largest distributors in China. Inspur AIStation collaborates with NVIDIA AI Enterprise to jointly create AI solutions.
Zhongji Xuchuang is an important supplier of NVIDIA, and the company will benefit from the demand for 800G optical modules from leading enterprises.
In the secondary market, NVIDIA concept stocks performed strongly today. As of the close on June 6th, Industrial Fulian rose the limit, while Zhongji Xuchuang rose by about 5%. Annuoqi, Shenghong Technology, Oshkon, Jingwang Electronics, Inspur Information and others followed suit.