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Nvidia surpasses $3.6 trillion market value after Trump win
Global Banking & Finance Review®
Company
By Noel Randewich
(Reuters) – Shares of Nvidia rallied to a record high on Thursday, making the chipmaker the first company in history to surpass a stock market value of $3.6 trillion as Wall Street extended a rally sparked by Donald Trump’s return to the White House.
The dominant AI chipmaker’s shares rose 2.2%, lifted by broad investor optimism about tax cuts and lower regulations after the Republican candidate’s Tuesday election victory.
Nvidia’s stock market value ended the day at $3.65 trillion, beating Apple’s record closing market capitalization of $3.57 trillion reached on Oct. 21, before the chipmaker on Tuesday overtook the iPhone maker as the world’s most valuable company, according to LSEG data.
Apple’s stock rose 2.1% on Thursday, leaving it with a market value of $3.44 trillion.
The S&P 500 technology index has surged over 4% in the two sessions since Trump won the election on Tuesday.
Nvidia has been the U.S. stock market’s biggest winner from a race between Microsoft, Alphabet and other heavyweights to build out their AI computing capacity and dominate the emerging technology.
The Silicon Valley chip designer’s stock has climbed 12% in November, with its value tripling so far in 2024.
Following this year’s surge, Nvidia now exceeds the combined value of Eli Lilly, Walmart, JPMorgan, Visa, UnitedHealth Group and Netflix.
Analysts on average see Nvidia increasing its quarterly revenue by over 80% to $32.9 billion when it reports its results on Nov. 20, according to LSEG.
In June, Nvidia briefly became the world’s most valuable company before it was overtaken by Microsoft and Apple. The tech trio’s market capitalizations have been neck-and-neck for several months.
Microsoft’s market value stood at nearly $3.16 trillion, with its stock up 1.25% on Thursday.
(Reporting by Noel Randewich; Editing by Lisa Shumaker)
Market capitalisation is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the stock price by the total number of outstanding shares.
A stock market is a collection of markets where shares of publicly traded companies are bought and sold. It provides a platform for investors to trade shares and helps companies raise capital.
An AI chipmaker is a company that designs and manufactures chips specifically optimized for artificial intelligence applications, enhancing the performance of AI algorithms and machine learning processes.
Investor optimism refers to a positive outlook among investors regarding the future performance of the market or a specific asset, often leading to increased buying activity and higher stock prices.
Quarterly revenue is the total income generated by a company during a specific three-month period. It is a key indicator of a company's financial performance and growth.
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