Nvidia hits new record high, market cap tops $3 trillion

There doesn't seem to be any stopping Nvidia (NVDA). The AI tech giant's stock hit a new record high on Wednesday. For the first time, the company's market cap topped $3 trillion, making it the second most valuable company in the US, surpassing Apple (AAPL) but still lagging behind Microsoft (MSFT).

In the video above, Yahoo Finance's Dan Howley discusses Nvidia topping the $3 trillion mark and what's driving the stock.

Be sure to check out Yahoo Finance's interview with Nvidia founder and CEO Jensen Huang.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Stephanie Mikulich.

Video Transcript

Wanna dig into and video a little bit because the record run as you were just talking about is continuing the chip giant topping $3 trillion in market cap at a record high today.

And here to discuss more is senior tech reporter Dan Halley Dan, you and I recently had the chance to talk with Jensen Wong, the, the CEO and founder of NVIDIA.

And what we were trying to sort of get at was like, is this gonna keep going?

Now, Jensen is a big idea guy, a visionary and he didn't say it in so many words, but he kind of said, yeah, it's gonna keep going and it has, yeah, I mean, look, they, they just closed uh above three trillion for, for the first time, also closed above Apple.

Uh So now they are once again the, you know, for the day uh the second largest uh company by market cap just behind uh Microsoft.

And I think, you know, one of the, the things that is potentially driving this uh is the announcement of the new chips coming uh in the years ahead.

He laid out the road map for what NVIDIA has to offer.

Uh at Cy basically saying that there's gonna be an ultra version of the uh Blackwell chip coming uh as well as Ruben uh the new platform that'll be there.

They say they're on a one year cadence.

And then the year uh after that 2027 there'll be an ultra version of the Ruben chip.

They also have uh a new CPU coming.

Uh And so, you know, obviously they continue to iterate on these, not only iterate but then come out with entirely new platforms uh as well as the, the different uh individual uh features, those platforms, not just the chips, but the, the interconnects that actually make these servers work.

And so that I think is something that is helping to, to push this forward.

Of course, it's not just the hardware, it's also the software.

We talk about this a lot C A uh helping to build that kind of moat around NVIDIA itself uh and kind of insulating it.

But you know, it's, it's not like the competition, isn't there a MD?

They announced new chips as well as a road map, Intel announced pricing uh trying to say that they're look just more competitive as far as pricing goes than NVIDIA.

But at the end of the day, are people gonna pick an Intel Gowdy chip or are they gonna pick an NVIDIA chip?

Uh They're gonna pick an NVIDIA chip if they wanna get the best out there and So they are gonna have to pay for it.

We're gonna have to pay up for it.

That's, that's the difference.

I mean, it's so interesting to me, not just to look at the market caps versus each other, but like I'm just glancing at Apple's um, revenue for 2023 of 300 $183 billion.

NVIDIA is growing enormously but its revenue, what at about $61 billion.

So Apple still in terms of its revenue, in terms of its earnings still dwarfs NVIDIA, but it's the growth prospects, right?

That people are betting on there.

But it is always interesting like when, when you used to see Amazon versus Walmart and Walmart sales were so much higher that Amazon's market cap and, and stock performance was so much better and a pe of like 200 right, exactly, which is not the case with the.

However, I think it's interesting just because, you know, you look at something like like apple and yeah, their, their market is, you know, as far as the, the products they have, they're in a mature market.

Uh they're trying to enter new spaces uh with a RVR, we'll see what goes on there, but they're, they're talking about generative A I or potentially we'll talk about generative A I coming up.

But yeah, in video, I mean, look, there's, there's tons of companies out there that not just the hyper scalars but others that want and need these kinds of, uh, chips if they can afford them.

Uh, and they're, they're all angling for them.

So we'll, we'll just see how, how much further it can go and maybe they'll play in a, you know, less expensive area at some point to try to get people who don't have the money to pony up for those.

Yeah, we shall see.

Thanks a lot, Dan for hopping on to talk to us about this milestone.

Another one for NVIDIA.

I appreciate it.