Mott Capital Management founder and CEO Michael Cramer analyzes Nvidia’s market impact, provides his economic outlook and discusses Boeing stock.
Nvidia CEO Jensen Huang got rock star treatment this week during a tour of his native Taiwan, while here in the U.S., investors continue to treat the company’s stock, a top bellwether for artificial intelligence, as a sure thing.
The chipmaker’s market capitalization of $3.1 trillion puts it just ahead of Apple and second only to Microsoft as the world’s largest company, making it just the third U.S. company to cross the $3 trillion milestone, according to Dow Jones Market Data Group.
Just three US companies have a market capitalization of $3 trillion
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NVDA | NVIDIA Inc. | 1,224.40 | +60.03 | +5.16% |
| AAPL | Apple. | 195.87 | +1.52 | +0.78% |
| MSFT | Microsoft | 424.01 | +7.94 | +1.91% |
NVIDIA’s share price increase comes ahead of a 10-for-1 stock split for shareholders of record on Thursday, June 6. NVIDIA shares will be distributed after the close of trading on Friday, June 7, with trading following the split beginning Monday, June 10, according to the company.
“When it comes to elite, transformative tech stories like Nvidia and the AI revolution, investors need to see the forest through the trees and determine how far this wave of spending can continue. [and estimates] “We’re looking at where AI is headed over the next three years, and we expect a trillion-dollar increase in AI spending over the next decade, with 60% to 70% of enterprises ultimately going down that path with AI use cases,” Wedbush Securities analyst Dan Ives said after the company’s big earnings report in May.
NVIDIA CEO Jensen Huang hits big in Taiwan
The company’s stock, which closed at an all-time high of $1,224.40 on Wednesday, is trading at $122.44 a share, but that level could fluctuate during trading on Thursday. The company’s shares are up more than 200% this year. Last month, the company raised its quarterly dividend by 150% to $0.10 a share.
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During his visit to Taiwan, at COMPUTEX 2024 in Taipei this week, Huang outlined the “endless” possibilities of AI and detailed a “roadmap of new semiconductors emerging on an annual cycle.”
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Supermicro CEO Charles Liang, right, and Nvidia co-founder and CEO Jensen Huang attend the Computex conference in Taipei, Taiwan on June 5, 2024. (Annabel Chee/Bloomberg via Getty Images)
Wearing his trademark black leather jacket, he spoke passionately about how the “Generative Computing Era” is fundamentally different from the past. While much of the tech talk was advanced and aimed at the general public, the overall message was clear: the computing world has been largely driven by ideas from 60 years ago. But after 20 years of working with Taiwanese tech giants like TSMC, Nvidia and its partners have reinvented the computing wheel. No more searching for information. Instead, the information you need is generated for you, making it more relevant and up-to-date than anything you can search for.
Fan poses for a selfie with Nvidia CEO Jensen Huang (center) during the Computex conference in Taipei, Taiwan on June 4, 2024. (Yi-Hwa Chen/AFP via Getty Images)
Local newspapers described him as a “rock star,” and he also posed for selfies with fans and threw the first pitch at the CTBC Brothers vs. Wei Chuan Dragons game at the Taipei Dome.
On June 1, 2024, NVIDIA CEO Jensen Huang threw the first pitch at the CTBC Brothers vs. Wei Chuan Dragons game at the Taipei Dome in Taiwan. (Jean Wang/Getty Images)
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FOX Business reporter Eryk Smith from Taiwan contributed to this report.
