By market capitalization, NVIDIA has become the world’s most valuable company, surpassing Microsoft and Apple. The surge is attributed to Nvidia’s dominance in the AI hardware market, which has nearly tripled in value this year.
NVIDIA Growth Due to AI Development Success
Investor optimism about AI technology’s future is rising, with NVIDIA dominating the market due to its superior processors. However, analysts warn that this optimism could decrease if spending on AI technology decreases.
The tech company’s daily turnover averages USD 50 billion, making it the most traded company on Wall Street.
The company’s stock price has recently skyrocketed, with the addition of over USD 110 billion to its market cap. Its market value has grown significantly, expanding from USD 1 trillion to USD 2 trillion in nine months and reaching USD 3 trillion in three months.
Despite the stock’s advances, the company’s earnings valuation has declined due to rising analyst estimates for future earnings.
The company has also just divided its stock 10-for-one, which may make it more appealing to individual investors.
Source: Gadget Pilipinas
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