In the early hours of this morning, the U.S. stock market once again witnessed a historic moment: Nvidia's stock price soared 5.16%, refreshing a record high for three consecutive trading days, with a cumulative increase of more than 147% this year, and a market capitalization of more than $3 trillion.
Nvidia's market capitalization has also officially surpassed Apple, becoming the second highest company in the world by market capitalization after Microsoft. So, what exactly makes Nvidia so strong? What are the investment opportunities that deserve our attention?
Let's first take a look at the factors that Nvidia's stock price continues to hit new highs.
First of all, the absolute advantage in the field of AI chips is the core reason. The rapid development of AI technology has brought a huge demand for high-performance computing chips, and NVIDIA's GPU not only performs well in graphics processing, but also shows strong computing power in AI applications such as deep learning and machine learning.
Secondly, the performance continued to grow substantially. Performance is undoubtedly the basis of the stock price. According to the previously released Nvidia's financial report data, the revenue in the first fiscal quarter reached an astonishing $26 billion, a year-on-year increase of 262%, and the net profit was $14.8 billion, a year-on-year increase of 620%. Such a growth rate not only demonstrates NVIDIA's strong performance, but also reflects the huge market demand for AI chips.
Again, a signal of unexpected future planning. Nvidia not only has an advantage in existing products, but its future plans are also impressive. CEO Jensen Huang recently announced that the Blackwell chip has been put into production, and plans to launch the Blackwell Ultra AI chip in 2025 and the next-generation AI platform Rubin in 2026, demonstrating NVIDIA's ambition and vision in technological innovation, which not only marks NVIDIA's technological breakthrough in the field of AI chips, but also heralds the company's further leadership in the field of high-performance computing.
Finally, the market strategy of splitting 1 share into 10 shares. Nvidia's previously announced 1-for-10 share plan will take effect after the close of trading on June 7. While this stock split has no impact on the total market capitalization of the stock, it is also a catalyst for Nvidia's stock price by enabling more investors to buy Nvidia's shares at a lower price, further expanding its market influence.
So, what investment opportunities can we see from NVIDIA's surge?
Xiaocai believes that it mainly includes three major investment opportunities: Nasdaq 100 index fund, artificial intelligence and semiconductors.
First, the NASDAQ index fund. This is the most direct, most of our retail investors can not directly invest in U.S. stocks, Nvidia is the NASDAQ index, NASDAQ 100 index weighted stocks, with the strong performance of Nvidia and other technology giants, the NASDAQ index, NASDAQ 100 index fund has become a way for investors to share the growth dividend of technology stocks.
Secondly, artificial intelligence. NVIDIA's growing performance is still due to the rapid development of artificial intelligence. The rapid development of AI technology provides a huge market space for enterprises in the AI industry chain.
Finally, the topic of semiconductors. With the rapid development of artificial intelligence and the development of technologies such as 5G, Internet of Things, big data, and cloud computing, the demand for semiconductors will continue to grow. NVIDIA's success is also a testament to the value of investment in the semiconductor industry.
Therefore, Xiaocai believes that it is no accident that Nvidia's market value surpasses Apple, but is the result of its deep accumulation in the field of AI chips, strong growth in performance, unexpected signals for future planning, and wise choice of market strategy.
Nvidia's stock price rally has revealed three major investment opportunities for us investors, with the NASDAQ, artificial intelligence, and the semiconductor industry worth paying attention to.