Stock Market

Nvidia (NVDA) Stock Grabs No. 2 Spot from Apple After Huge Move to $3 Trillion

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Yesterday, Nvidia (NASDAQ:NVDA) achieved yet another milestone. The semiconductor and artificial intelligence (AI) leader surpassed one of the tech sector’s biggest names on the market capitalization list, blowing past Apple (NASDAQ:AAPL) this week.

With NVDA stock continuing its winning streak, Nvidia touched a market cap of $3 trillion, ultimately reaching $3.005 trillion earlier today. At $3.002 trillion, Apple was just below it, although Nvidia is now back at $2.98 trillion as of this writing. Meanwhile, both tech giants still trail Microsoft (NASDAQ:MSFT) and its market cap of $3.14 trillion.

At this point, it seems as though Nvidia can’t be stopped. What’s more, with its upcoming 10-for-1 stock split, interest in NVDA stock will likely keep rising as investors rush to pile into the AI breakout sensation.

What’s Happening With NVDA Stock?

Even after yesterday’s good news, NVDA stock slipped into the red this morning, now down about 1%. Still, Nvidia has performed extremely well over the past month, rising above the $1,200 mark with gains of more than 30%.

As CNBC reports, this type of growth shows that investors are becoming more and more comfortable with Nvidia’s growth prospects. NVDA stock has demonstrated an impressive ability to climb through volatile economic conditions throughout the past year. But now it is becoming clear that the AI leader can continue to dominate the booming market by making sales to a “handful of cloud companies.” Indeed, even Tesla (NASDAQ:TSLA) CEO Elon Musk expects to make a large chip order from Nvidia later this year.

Nvidia stock has shown that it can become even more valuable than many of the tech sector’s biggest names. The upcoming NVDA stock split is likely to spur even more growth. Per InvestorPlace contributor Josh Enomoto:

“Of course, with this intense performance comes the reality that the per-share price is too expensive for retail investors lacking access to fractional ownership capabilities. By splitting NVDA stock, nothing fundamentally changes in terms of the action itself. However, the move dilutes the share pool to make each unit cheaper, thus enhancing accessibility. This, in turn, may cause retail investors on the sidelines to jump in.”

As it stands, Nvidia essentially has one more name to pass before it becomes the world’s most valuable company. The stock split could help it accomplish just that. And even if it doesn’t, Nvidia could still reach that milestone this year given its current growth trajectory.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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