Nvidia CEO reclaims spot in $100bn club as AI chipmaker hits $3tn

Nvidia becomes second most valuable company as it rallies to record highs. — Reuters/File

Nvidia CEO Jensen Huang has rejoined the $100 billion club after the market value of his chip making giant surged to a whopping three trillion dollars on Wednesday, the Guardian reported.

Huang’s wealth increased to $107.4 billion, trailing right behind tech billionaire Michael Dell and Indian billionaire Mukesh Ambani, according to the Bloomberg Billionaires Index.

The artificial intelligence chipmaker has overtaken phone making giant Apple to become the world’s second most valuable company.

Nvidia’s stock was up 5.16% at $1,224.40, giving the company a market value of $3.01 trillion at market close while Apple’s market capitalisation was at $3.00 trillion at market close as its stock climbed 0.78%.

However, software giant Microsoft remains the world’s most valuable company with a market value of $3.14 trillion as its shares climbed slightly on the same day.

The latest rally for Nvidia comes as it prepares to split its stock 10-for-one, starting this Friday, which could make it more appealing to individual investors.

Demand for Nvidia’s top-of-the-line processors is far outstripping supply as Microsoft, Meta Platforms and Google parent Alphabet race to enhance their AI computing capabilities and dominate the emerging technology.

Nvidia has rallied nearly 30% just since 22 May, when it issued its latest stellar revenue forecast.

Meanwhile, Apple faces weak iPhone demand and fierce competition in China, the world’s largest smartphone market, and investors view it as lagging other tech giants in incorporating AI features into their products and services.

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