Heaptalk, Jakarta — Leading AI-based chip manufacturer Nvidia has become the most valuable tech corporation globally, as its valuation has soared to US$3.012 trillion (around Rp48.849 trillion).
Previously, this California-based chip company’s shares have been up about 147% this year, uplifting around US$1.8 trillion as demand continues to surge for its chips, which are used to run artificial intelligence.
“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” CEO of Longbow Asset Management, Jake Dollarhide, comments on this matter, cited in Reuters. (06/06)
The surge in this chip company’s market value, which reached US$3.01 trillion, is considered to have surpassed the market value of Apple, which is currently in second place in the world after Microsoft. As noted by Reuters, Microsoft has a market value of US$3,15 trillion after closing its stock prices of up to 1.9% growth, and Apple has a market cap of around US$2.99 trillion as of Wednesday.
As the firm rallies further, Nvidia will hold a ten-for-one stock split of its issued common stock to make share ownership more accessible to employees and investors. The split will be effected through an amendment to Nvidia’s Restated Certificate of Incorporation, resulting in a proportionate increase in the number of shares of authorized common stock.
Each record holder of common stock, as of the close of the market on Thursday (06/06), will receive nine additional shares to be distributed after the close of the market tomorrow (06/07). This measure is expected to increase Nvidia’s appeal to individual investors.
In its early quarter financial report, Nvidia noted revenue for the Q1 ending April 28th, 2024, worth US$26 billion, up around 18% from the previous year and climbing around 262% from a year ago. For this quarter, its GAAP earnings per diluted share were about US$5.98, increasing 21% from the former. The firm’s earnings per diluted share were US$6.12, elevated from the previous quarter and up 461% from a year ago.
“The next industrial revolution has begun. Companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center, AI factories, to produce a new commodity, Artificial Intelligence,” CEO of Nvidia, Jensen Huang, conveyed separately during the financial report on May 22nd.
