Nvidia, which has maintained its star status on the U.S. stock market this year in terms of stock returns, has gained nearly $500 billion since the start of 2024, nearly as much as Tesla’s total market capitalization, Markets Insider reported.
The maker of advanced graphics processing units (GPUs) has seen its shares rise 40% year-to-date, boosting its market capitalization by $489 billion by the close of trading in New York on Monday.
Nvidia’s total stock market value now stands at $1.7 trillion, after it first crossed the $1 trillion mark last May and then topped $1.5 trillion in late January.
If this trend continues, Nvidia could soon overtake Amazon and Alphabet to become the third most valuable company in the United States behind Microsoft and Apple.
Tesla, in turn, one of the stars of the American stock market, on the other hand, started the year extremely disappointing: the price of its shares fell by 27%. The automaker thus lost $214 billion from its market capitalization, which now stands at $576 billion.
In other words, Tesla is now worth only $86 billion more than Nvidia has earned in total in just over 5 weeks of trading since the beginning of the year.
Nvidia is the big winner of the AI hype
Nvidia’s share price rose 2% in the premarket session on Tuesday, while Tesla fell by the same percentage. If this trend continues throughout the day, the difference between Tesla’s total value and Nvidia’s year-to-date capitalization growth will narrow to just $50 billion.
Tesla’s share price has fallen sharply amid the general decline of electric car manufacturers recently.
Investors have flocked to shares of Nvidia, a company known for years to video game fans mostly for its graphics cards, as it dominates the market for advanced graphics processing units (GPUs), the components used by the AI systems it powers to perform complex calculations. .
Building on the huge boost Nvidia AI has received is the fact that on December 23, 2022, a day after OpenAI officially released ChatGPT to the general public, the company’s stock price was just $152 at the close of the New York Stock Exchange. .
Nvidia shares are currently trading at $688.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.