NVIDIA hits $4tn market valuation

This week we witnessed a landmark moment when NVIDIA became the first publicly traded company to hit a market valuation of $4tn.

For context, Microsoft’s valuation is around $3.7tn and Apple around $3.1tn. NVIDIA hit $1tn about two years ago and has seen its shares continue their stratospheric rise ever since.

Of course, back in April the firm’s share price slumped to c.$96. If you are a shareholder, what did you do as you saw your gains slide? Did you panic and take profit? Or did you “buy the dip”? If the latter, you’ll be laughing now as shares are back at all-time highs, hitting $164 yesterday.

In its Q1 results, we learned that NVIDIA would be liable for a $4.5bn charge for exports to China of its H20 products. This week, the firm said it is looking at a September timeframe for the launch of a new chip specifically designed for the Chinese market.

NVIDIA sits at the heart of many AI ecosystems, working with the global systems integrators and hyperscalers, and playing an important role in funding innovative startups.

Speaking at London Tech Week in June alongside the Prime Minister, CEO Jensen Huang said the UK was in a “Goldilock’s circumstance” with “one of the richest AI communities anywhere on the planet” and the “third-largest AI venture capital investment [area]”. He said the ecosystem is “perfect for take-off, it’s just missing one thing”, which is having its own AI infrastructure.

Posted by: Kate Hanaghan at 09:52

Tags: shares   AI   marketvaluation