Nvidia Adds $1 Trillion To Its Market Cap In Just 3 Months This Year; Beating Other Tech Giants 

Nvidia has had an amazing start to the year. It’s just the third month and its market capital has already reached $1 trillion in this year alone— almost double of Tesla’s entire market cap.

The credit for this tremendous growth goes to the increasing demand for AI chips in the industry and Nvidia is one of the biggest manufacturers of chips. As per reports, Nvidia’s sales more than doubled last year, and if estimates are to be believed they’ll keep growing throughout 2024.

The company actually changed its business model over the years. It started out as a manufacturer of gaming units, which it still does, but last year its gaming revenue went from 53% of the total to just 17%.

On the flip side, its AI data center’s revenue jumped to 78% from 25%. It’s clear that Nvidia is aligning its business model with the AI boom, hence the profits.

The reason why its unprecedented growth is even more surprising is that its competitors are not doing all that great. Tesla, for instance,  experienced a decrease in the demand for its electrical vehicles.

On top of that, the growing competition from Chinese companies that are somehow managing to offer the same product for cheaper is forcing manufacturers here to slash their prices as well.

Apple is also facing similar stiff competition from its Chinese contemporaries. The sales of iPhones have been rather disappointing this year, and considering the competition in the auto industry, Apple decided to step back from its electrical vehicle project at the last moment. According to reports, it was a tough task convincing their investors for the new Apple Vision Pro.

Read More: Nvidia briefly becomes 4th most valuable U.S. company

Nvidia’s Share Prices: Are They Going To Split Anytime Soon?

With such a massive market capital, it’s quite obvious that its share prices are also growing. This Thursday, the shares increased by 4% and reached $926 which in turn brought its total market capital to $2.28 trillion.

It’s at a point in the market where we can expect another share split, just like the one we saw in 2021. During that time, the stocks had reached $600 per share so the company decided to split and offer it four-for-one.

The reason why these splits are important is because they allow small investors to buy the shares. In a process like this, the fundamental valuation doesn’t change but the equity is simply redistributed over more stocks.

However, all of this is just speculation. Nvidia is still smashing records and has not announced any plans to split its stocks.