Nvidia (NVDA) stock took a slight dip in early trading on Thursday after a remarkable rally propelled the company past a $3 trillion market cap for the first time. The stock opened at $1,240.09 per share before sliding around 0.4% in early morning trading.
This surge in Nvidia’s stock price pushed the chip giant past Apple, making it the second-most-valuable company on the US stock market, with Microsoft currently holding the top spot. The rally was part of a broader gain in tech stocks, fueled by softer US economic data and a decline in Treasury yields, leading to hopes that the Federal Reserve may cut rates as early as July.
Nvidia has been a standout in the AI sector, with investor enthusiasm growing, especially after OpenAI’s release of ChatGPT in late 2022. The stock has seen a remarkable increase of over 140% this year and 200% over the last year, with a staggering 3,300% gain in the last five years.
The company’s CEO, Jensen Huang, recently announced plans to release a high-powered version of its Blackwell chip, called the Blackwell Ultra, in 2025, followed by a new AI chip platform, Rubin, in 2026. Nvidia’s dominance in the tech industry as a supplier for AI chips and integrated software has been solidified by partnerships with tech giants like Amazon, Google, Meta, Microsoft, and Tesla.
While Nvidia faces competition from AMD and Intel in the AI chip market, the company’s strong financial performance and innovative product roadmap position it as a leader in the industry for the foreseeable future. With a 10-for-1 stock split and a dividend increase on the horizon, Nvidia’s growth trajectory seems unstoppable.