The world has a new second most valuable public company – the AI microchip maker Nvidia.
Riding the artificial intelligence (AI) boom – Nvidia’s share price has risen to the extent that it’s now worth more than $3trn (£2.34trn) and overtaken Apple.
Only Microsoft is a more valuable company listed on a stock exchange, while Apple has fallen into third place.
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Meteoric rise
Nvidia shares rose 5% on Wednesday after a year of growth. One share now costs $1,224.40 (£957).
A year ago a share was priced at $386.54 (£302), but investors have flocked to the firm to invest in AI.
As recently as February, Nvidia was valued at $1trn less than now but recently announced what’s called a “stock split”, which sparked fresh interest.
Such a move will increase the number of shares available – so more people can invest – and reduce the share value as a result. This is to take place on Friday.
The value of public companies is measured by the number of shares issued and the price of those shares.
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The AI race
Tech companies – including Microsoft and Apple – have been racing to develop AI and embed it in their products.
Nvidia is a younger company than some of its peers having been founded in 1993. Similar to many tech giants it was founded in California in the US.
It’s been developing microchips since its inception and has been adding machine-learning features to its products for years.
The American multinational corporation and technology company is based in Santa Clara, California.