Nvidia Rises to $3T Valuation for First Time Amid AI Boom

Shares of US chip giant Nvidia Corp. surged on Wednesday to a level that saw the company’s market cap rise past the $3 trillion mark for the first time as investors continued to bet on the innovative artificial intelligence (AI) industry.

The stock ended the session with a 5.16% gain at $1,224.40, lifting the firm’s value to $3.01 trillion and beating Apple Inc.’s $3.00 trillion to become the world’s second-largest public company behind Microsoft Corp., which is holding a $3.15 trillion value.

The shares last traded 0.94% higher at $1,235.95 in after-market hours.

The rise marked a significant milestone for the AI darling’s stock, which has increased over 3,224% in the last five years and 147% so far this year. The stock is set for a 10-for-1 split later this month, providing more investors the opportunity to own a piece of the California-based chipmaker.

Nvidia’s Strong Run Continues, Announces New AI Chip Plans

Nvidia’s latest feat came after it posted solid earnings that signaled continued resilience in demand for its graphics processing units (GPUs).

The company reported revenue of $26.04 billion for the first quarter ending April 28, surpassing estimates of $24.65 billion. Net income stood at $14.88 billion or $5.98 per share, higher than the $2.04 billion or $0.82 per share logged in the same period a year earlier.

Earnings outlook for the current quarter was also better than expected. The firm estimated sales of $28.00 billion, above Wall Street’s projected $26.61 billion.

Investors welcomed the results, which further supported expectations that increased spending on AI systems tied to semiconductors will persist.

Nvidia Chief Executive Jensen Huang revealed on Sunday their plans to upgrade their AI accelerators annually and roll out the Blackwell Ultra chip in 2025.

Huang also announced the ‘Rubin’ GPU architecture, the successor of its still recent Blackwell chips, set to be launched in 2026, followed by an Ultra version in 2027.

Currently in development, the next-gen AI chip platform was introduced when the company’s domestic rivals, including Advanced Micro Devices (AMD) Inc. and Intel Corp., attempt to catch up to its lead in the AI chip race.

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