Nvidias stock hits record high of 1200 marking historic milestone
Nvidia, the semiconductor giant listed on NASDAQ under the symbol NVDA, has reached a significant milestone by surpassing the $1,200 mark for the first time in its stock price history. This achievement has propelled the company’s market capitalization to an impressive $2.95 trillion, positioning it just 3% below Apple (NASDAQ: AAPL) as the world’s most valuable public company.
Currently, NVDA stock is trading at $1,198.48 per share, reflecting a 1.56% increase over the past 24 hours.
In the year 2024 alone, Nvidia has added a remarkable $1.8 trillion to its market cap, exceeding the total market value of Tesla (NASDAQ: TSLA) threefold. Furthermore, Nvidia’s market cap gains so far this year have surpassed the combined market caps of Walmart, Tesla, and JP Morgan.
Nvidia’s stock hit an all-time high on June 5, as reported in a post by The Kobeissi Letter on X.
The company’s success can be attributed to its prominent role in the artificial intelligence (AI) revolution, with its high-end chips being critical components for virtually all AI applications. This has positioned Nvidia as the primary beneficiary of the increasing adoption of AI, leading to a significant surge in its stock value over the past year.
In contrast, Apple has recently conceded its top spot to Microsoft, facing challenges with weak demand and fierce competition in China. While Apple’s innovation growth appears to have slowed down, Nvidia has consistently capitalized on various growth opportunities, from gaming to crypto, and now AI.
Nvidia’s dominance in the market has had a substantial impact on the S&P 500 and Nasdaq, contributing over a third of the S&P 500’s gains this year. The company also achieved the fastest growth from $1 trillion to $2 trillion in 2024, surpassing other tech giants like Amazon, Alphabet, and Saudi Aramco.
Despite the soaring share price, Nvidia’s consistent ability to exceed revenue and profit expectations has led to a decline in its forward earnings valuation. The company’s popularity extends to the derivatives market, with the GraniteShares 2x Long NVDA Daily ETF (NVDL.O) emerging as the largest single-stock exchange-traded fund (ETF).
As a global leader in AI computing, Nvidia’s innovative technology plays a pivotal role in driving the artificial intelligence boom. Its GPU and DPU products are essential for accelerating AI workloads, enabling businesses and researchers to leverage AI for a wide range of applications, from autonomous vehicles to healthcare.
With the increasing integration of AI applications by Big Tech companies, Nvidia’s cutting-edge solutions are in high demand, fueling the company’s rapid growth. Positioned at the forefront of the AI revolution, Nvidia is well-equipped to maintain its leadership position and shape the future of technology.
