Nvidia breaches the $3 trillion valuation.

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Jun 5th: Overtakes Apple

Nvidia, the heart of every AI company, had overtaken Apple to become the second most valuable company in the world on Wednesday, June 5. How huge it is? Almost a year ago, in May 2023, they entered the $1 trillion valuation club. At that time, there were only 7 other companies (six U.S and one Saudi Arabian) that had ever a market capitalization in excess of $1 trillion.

Nvidia’s H100 GPUs were already in such demands, that top AI leaders that we know were begging for their allocation. In another 180 days, on March 1 2024, Nvidia crossed the $2 trillion mark. To be frank, by this time, GPUs have become more valuable than anything else in this world. It was like the elixir of AI world. Everyone needs it. Without this, it is not possible for anyone to advance. Cisco chief information officer had mentioned at a CIO summit how those GPUs arrived by armored car.

Even when Nvidia reached $2 trillion, four of the earlier seven companies were there. The latest among them was Alphabet (the parent company of Google) which reached the milestone on November 8, 2021. It did not take another 180 days for the semiconductor king to reach the next trillion-dollar mark. On June 5, it become the third company to reach the $3 trillion mark and moved past Apple to become second in line.

Coming to Apple, it has been a bit silent about AI advancement. We do know, a powerful Siri upgrade is incoming. More of it and anything more in the world of AI, would be announced on the much-awaited Jun 10^th Apple’s Worldwide Developers Conference (WWDC).

What is important to note is the growth of Nvidia. The future is AI and everyone needs Nvidia. Earlier, Huang had said at an event about the plans to roll out Blackwell Ultra chips in 2025 and Ruben platform in 2026. Also, it would be interesting to see what AMD and Intel will offer to keep themselves in the race. Meanwhile, there could be another possibility: what if everything slows down. There might be regulations and slower production. Even Nvidia is unable to keep up with the rising demands. Reuters had earlier reported on how China had illegally acquired banned Nvidia chips and servers from Dell and Super Micro via tenders. There must be stricter policies and security to avoid such cases.

Do you think that the surge Nvidia has shown over the last few months will slow down or even stop?

On Jun 6th: Nvidia slips to 3rd again.

Today, the shares fell after CEO Huang Jensen started selling some of his stocks. Nvidia is preparing for a 10-for-1 stock split tomorrow. Microsoft is the leader with valuation of $3.14 trillion. As I write this, Nvidia again slipped to number 3. Apple is second at 2.99T and Nvidia at 2.96T. Over the next few days, we might see change in the rankings and values.