Nvidia CEO Jensen Huang delivered the keynote address ahead of Computex 2024, which takes place in Taipei on June 2, 2024.
Sam Yeh | AFP | Getty Images
Nvidia's market capitalization briefly surpassed $3 trillion in intraday trading on Wednesday as investors continued to bet on the company making most of the chips that will power the AI boom.
Nvidia shares rose more than 4% in intraday trading on Wednesday before falling. Nvidia also briefly overtook Apple to become the second-largest company in the United States.
Nvidia's milestone is the latest eye-opening milestone as its stock price soars as investors bet on artificial intelligence. Its shares have risen more than 3,224% in the past five years. The company plans to split its stock 10-for-1 at the end of this month.
Apple became the first U.S. company to reach a market cap of $3 trillion in intraday trading in January 2022. Microsoft achieved the $3 trillion market cap in January 2024. Nvidia, founded in 1993, surpassed a $2 trillion valuation in February and then hit the $3 trillion milestone just three months later.
In May, Nvidia released its first-quarter results, suggesting that demand for its expensive, high-performance AI chips (also known as GPUs) shows no signs of slowing. Nvidia reported total sales of $26 billion, more than triple what it reported a year ago. Nvidia also beat Wall Street expectations for revenue and profit, saying it would post revenue of about $28 billion in the current quarter.
Nvidia's stock has soared in recent years, driven by tech industry demand for the company's chips, which are used to develop and deploy large-scale artificial intelligence models such as those at the heart of OpenAI's ChatGPT.
Companies including Google, Microsoft, Meta, Amazon and OpenAI have purchased billions of dollars worth of Nvidia's graphics processing units.
