Driven by optimistic market expectations for the development of artificial intelligence, American chip giant Nvidia's market value reached $3.34 trillion at the close of June 18th local time, surpassing Microsoft to become the largest US listed company by market value.
On that day, NVIDIA's stock price significantly increased by 3.51% to close at $135.58 per share, while Microsoft's stock price fell by 0.45% to close at $446.34 per share, with a market value of $3.32 trillion. Previously, NVIDIA's market value exceeded $3 trillion on June 5th, surpassing Apple's market value, and on June 10th, it split one of its shares into 10 to lower the investment threshold.
Data shows that Nvidia's stock price was less than $12 per share in October 2022. Since the beginning of this year, Nvidia's stock price has experienced two rapid increases, with a cumulative increase of 209.49% over the past year.
The rapid increase in demand for artificial intelligence chips and Nvidia's leading position in the industry have led to explosive growth in performance in the past two years, driving investors to continue buying.
According to NVIDIA's latest financial report, the company achieved a revenue of $26.044 billion in the quarter ended April 28, a year-on-year increase of 262%, with a gross profit margin of 78.4%. The net profit for the quarter was $14.881 billion, a year-on-year increase of 628%.
However, the P/E ratio of Nvidia's share price close to 80 times and its rapid rise in a short period of time triggered some investors' concern about the price foam. A small number of heavyweight technology stocks represented by Nvidia drove the U.S. stock index to a new high, which also caused investors' concern about the lack of breadth of the overall rise of U.S. stocks.