On Wednesday (October 29), US stocks closed with Nvidia... It rose 2.99% to $207.04, bringing its market capitalization to over $5 trillion, making it the first company in the world to achieve this milestone.
What does $5 trillion mean? The Dow Jones Industrial Average, which includes Nvidia, comprises 30 stocks with a total market capitalization of $23 trillion. Nvidia, ranking first, accounts for 21.87%, exceeding one-fifth. Microsoft ranks second and third. And Apple Their total market capitalization is $4 trillion, which is 80% of Nvidia's; Amazon ranks fourth. The total market capitalization of the 9th to 30th ranked companies is $2.46 trillion, less than half of Nvidia's; the total market capitalization of the 9th to 30th ranked companies is $4.76 trillion, close to Nvidia's total market capitalization.
Furthermore, based on yesterday's closing prices, the total market capitalization of the S&P 500 reached $62 trillion, and the Nasdaq... The total market capitalization of the index reached $42 trillion, with Nvidia accounting for 8% and 11.9% of the market capitalization, respectively.
In terms of news, just the day before, Nvidia held its GTC (GPU Technology Conference) in Washington, D.C., where Jensen Huang delivered a keynote speech outlining his vision for chips, 6G, quantum computing, physics-based AI, and robotics . Many grand plans, including autonomous driving.
Analysts say Nvidia's stock price increase reflects investors' confidence in artificial intelligence. There is confidence in continued investment in the field, but some warn that its valuation may already be too high.
Matthew Tuttle, CEO of Tuttle Capital Management, points out: "The current expansion of artificial intelligence relies on a few dominant companies funding each other's capacity. Once investors start demanding cash flow returns rather than being satisfied with capacity expansion, parts of this virtuous cycle may come to a standstill."
(Article source: Eastmoney) Research Center
