Nvidia's Market Value Surpasses $3 Trillion Amidst Soaring Demand for AI Chips

Nvidia's stock price has more than doubled this year, following a spectacular tripling in 2023, positioning it as the third most valuable company in the S&P 500. On Wednesday, Nvidia's stock rose again, surpassing a remarkable $3 trillion in market value.

The company is set to undergo a significant stock split, offering nine additional shares for every one that investors currently hold. This move, effective at the close of trading on Friday, June 7, aims to make Nvidia's shares more affordable for a broader range of investors. The split is open to all shareholders of record as of Thursday, June 6. Nvidia's stock closed Wednesday at $1,224.40, making it one of only 11 companies in the S&P 500 with a share price exceeding $1,000.

Nvidia has witnessed soaring demand for its semiconductors, essential for powering artificial intelligence applications. The company's revenue more than tripled in the latest quarter compared to the same period last year. Here's a closer look at the eye-popping numbers:

• $3.011 Trillion: Nvidia's total market value as of Wednesday. Earlier this year, it surpassed Amazon and Alphabet, becoming the third most valuable public company, trailing only Microsoft ($3.168 trillion) and Apple ($3.029 trillion). Just two years ago, Nvidia was valued at around $418 billion.

• $147 Billion: The one-day increase in Nvidia's market value on Wednesday.

• 10-for-1 Stock Split: Nvidia's 10-for-1 stock split will take effect at the close of trading on June 7, giving each investor nine additional shares for every share they own.

• $26 Billion: Revenue for Nvidia's most recent fiscal quarter, more than tripling the $7.2 billion reported in the same period a year ago. Wall Street expects Nvidia to generate $117 billion in revenue for fiscal 2025, nearly double its projected revenue for 2024 and more than quadruple its revenue from the year before.

• 53.4%: Nvidia's estimated net margin, indicating that approximately 53 cents of every $1 in revenue is converted into profit. For comparison, Apple's most recent net margin was 26.3%, and Microsoft's was 36.4%, though both companies have significantly higher revenue than Nvidia.

Nvidia's remarkable financial performance and strategic stock split underscore its growing influence in the AI industry. As demand for AI chips continues to surge, Nvidia remains a key player, driving innovation and growth in the technology sector.