Nvidia Corp (NASDAQ:NVDA) shares soared to record highs on Wednesday, valuing the company at more than $3 trillion and making it the second most valuable company in the world. Apple Inc (NASDAQ:AAPL).
Nvidia plans a 10-for-1 stock split on June 7 to attract more individual investors.
Nvidia’s valuation is up 147% by 2024 due to strong demand for AI processors from companies like Microsoft Corp (NASDAQ:MSFT), Metaplatforms Inc (NASDAQ:META), and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL).
On Wednesday, Nvidia added nearly $150 billion in market cap, more than its entire value AT&T Inc (NYSE:T), reports Reuters.
Jake Dollarhide, CEO of Longbow Asset Management, noted: “Nvidia is making money on AI right now, and companies like Apple and Meta are spending money on AI.”
Nvidia’s CEO Jensen Huang received a lot of media attention at Computex in Taipei. Meanwhile, Apple faces weak iPhone demand and fierce competition in China.
According to S&P Dow Jones Indices, five companies, including Nvidia, Microsoft, Meta, Alphabet and Amazon.Com Inc (NASDAQ:AMZN), are responsible for about 60% of the S&P 500’s total return of over 12% this year. Nvidia alone contributed about a third of these gains, following a 147% increase in 2024.
Angelo Kourkafas, senior investment strategist at Edward Jones, highlighted the potential vulnerability of the market if these key stocks falter and the rest of the market fails to provide support.
Tajinder Dhillon, senior research analyst at LSEG, expects the earnings gap between the ‘Magnificent Seven’ companies and the rest of the S&P 500 to narrow as 2024 progresses.
Recent reports indicate that Nvidia is preparing to ramp up investment in Taiwan, with plans to build its second supercomputer there. This underlines the importance of a crucial supplier Taiwan Semiconductor Manufacturing Co (NYSE:TSM).
Nvidia has already tapped Samsung Electronics Co for the supply of HBM (high-bandwidth memory) chips and is now under surveillance Intel Corp (NASDAQ:INTC) as a potential supplier to overcome supply chain constraints.
Analysts reaffirmed Nvidia as the top AI beneficiary after the recent Taiwan event, citing opportunities with its Hopper platform and Blackwell B100/200.
Nvidia shares are up more than 217% in the past twelve months. Investors can gain exposure to the stock through SPDR S&P500 (NYSE:SPY) and iShares Core S&P 500 ETF (NYSE:IVV).
Price promotion: NVDA shares were trading 0.83% lower at $1,214.17 at last check on Thursday.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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This article What’s going on with Nvidia stock on Thursday? originally appeared on Benzinga.com
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