Nvidia Surpasses Microsoft as Most Valuable Public Company: Key Insights for Investors
$NVIDIA(NVDA.US$ has become the world's most valuable public company. Founded in 1991, Nvidia initially focused on gaming hardware but has seen its stock soar in recent years as its technology became crucial for AI development. This surge has elevated co-founder and CEO Jensen Huang's net worth to approximately $117 billion, placing him as the world's 11th wealthiest person.
On Tuesday, its shares rose 3.5%, boosting its market cap to $3.34 trillion, surpassing $Microsoft(MSFT.US$'s $3.32 trillion valuation. Earlier this month, Nvidia's market cap hit $3 trillion for the first time, overtaking $Apple(AAPL.US$.
Nvidia shares have surged over 170% this year, driven by the company's pivotal role in generative AI. Nvidia dominates 80% of the AI chip market for data centers, which has seen tremendous growth due to demand from tech giants like OpenAI, Microsoft, $Alphabet-A(GOOGL.US$, $Amazon(AMZN.US$, and $Meta Platforms(META.US$. In its latest quarter, Nvidia's data center revenue skyrocketed 427% year-over-year to $22.6 billion, making up 86% of its total sales.
Nvidia is a newcomer to the title of the most valuable U.S. company, a position traditionally held by Apple and Microsoft. Despite its rapid ascent, Nvidia has not yet been included in the $Dow Jones Industrial Average(.DJI.US$, which comprises 30 of the most valuable U.S. companies. Last month, Nvidia announced a 10-for-1 stock split, effective June 7, improving its chances of joining the price-weighted index where higher stock prices have greater influence.
XLK Rebalancing
$The Technology Select Sector SPDR® Fund(XLK.US$, the second-largest tech sector ETF with $72 billion in assets, will significantly reallocate its holdings on Friday. Nvidia's allocation will increase from about 5% to over 20%, making it the fund's second-largest holding, while Apple's allocation will drop from roughly 21% to 5%. This shift follows Nvidia surpassing Apple's market capitalization. Microsoft remains the top holding. The rebalancing is expected to put upward pressure on Nvidia's stock and downward pressure on Apple's, although the exact impact is uncertain and depends on broader market reactions. In the long term, stock prices will be influenced by individual company performance and overall market conditions.
Source: Yahoo Finance, CNBC, BBC
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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溫馨提示 : This is normal pass msft and appl AI is super hot issue and msft windows over 20 years looks like traditional business and apple I phone after Steve job pass away nothing fresh (all I pod I phone I pad came from Steve job idea) Tim Cook maybe only I watch lol future just another traditional business like IBM
RideTheTide1906 : Let’s gooo NVDA