US-based chipmaker Nvidia experiences a remarkable surge in stock value and market capitalization, propelled by record-breaking revenues and strategic position in the artificial intelligence sector.
Nvidia, a leading US-based chipmaker, experienced a significant boost in its stock value, soaring over 11%, following the release of its quarterly financial results. The company’s revenues surged by over 262% for the quarter ending in April, significantly surpassing Wall Street estimates. Consequently, Nvidia’s market capitalization increased to £2 trillion, surpassing the value of AstraZeneca, the largest firm on the UK stock market.
The surge is attributed to Nvidia’s strategic position in the artificial intelligence (AI) market, where its semiconductors are crucial for AI applications. Chief Executive Jensen Huang highlighted strong demand, indicating a positive outlook for continued momentum. The company has also announced a ten-for-one stock split effective June 7 and a 150% increase in its quarterly cash dividend.
Historically, Nvidia, founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, began with a focus on PC gaming and graphics processing units (GPUs). Today, Nvidia’s chips are pivotal in AI, cementing its position among the “Magnificent Seven” tech giants alongside Alphabet, Amazon, Apple, Meta, Microsoft, and Tesla. As of May 22, Nvidia’s market value soared by $1.152 trillion this year, positioning it as the third most valuable public company, following Microsoft and Apple.
