The shares of NVIDIA, a technology company in crypto mining and leader in AI, have grown to exceed 3,000 billion dollars in market cap. Now the company has climbed the rankings above Apple, placing itself in second place.
Summary
Crypto Mining and the boom of NVIDIA stocks: the market cap exceeds $3,000 billion
NVIDIA surpassed 3 trillion dollars in market cap yesterday, slightly overtaking Apple and securing the second place in the overall ranking.
In fact, now there is Microsoft in first place with a market cap of 3.151 trillion dollars, NVIDIA with 3.011 trillion dollars and in third place Apple with 3.003 trillion dollars.
The company in crypto mining and leader in Artificial Intelligence is experiencing a boom of its NVDA shares among investors.
And in fact, in just three weeks, the shares of the computer chip manufacturing company have risen by nearly 700 million dollars.
At the time of writing, the opening price for today for NVDA shares is $1,235.91, while yesterday’s close was $1,224.40. Not only that, already yesterday the price of NVDA was in pump by +5.16% compared to the previous 24 hours.
Looking at the NVIDIA stock chart, it is possible to notice that NVDA has risen in price by +43% in the last three months and by 170% in the last six months.
The stock split in sight
Supporting further growth for Nvidia is the 10:1 stock split that will take effect at the close of June 6, today.
In practice, every registered holder of ordinary shares, at the close of the market on Thursday, will receive nine additional ordinary shares. These shares will be distributed after the close of the market on Friday, June 7, 2024.
The start of trading, on a split-adjusted basis, is instead scheduled for the market opening on Monday, June 10, 2024.
The announcement of the ten-for-one stock split came at the end of May, and it aims to reflect the company’s confidence in its long-term growth prospects. Not only that, it seems that another goal is to make its NVDA shares more accessible to a wider range of investors. This stock split, in fact, should divide each existing share into ten new shares.
The success of NVIDIA stocks does not stem directly from crypto mining
In any case, it seems that this astonishing growth of NVIDIA does not derive strictly from cryptocurrency mining, but from its contribution to the growing AI sector.
In fact, NVIDIA is proving to be the leading company and the most important in the development of chips for AI technology. Its graphic processors have become fundamental as servers for these Artificial Intelligence models.
In the past, the very powerful graphics cards from NVIDIA have been widely used in the field of crypto mining. These cards were then replaced by ASICs, which are devices designed to perform a single task, the extraction of hashes especially in Bitcoin mining.
The NVIDIA graphics cards were therefore later used for mining other cryptocurrencies, such as Ethereum, before it became a Proof-of-Stake protocol.
Beyond AI, NVIDIA’s computer chips are also widely used in the gaming sector.
