In a dramatic surge, chip stocks rallied in after-hours trading on mid-June 2024, driven by Nvidia’s continued market momentum that saw it surpass Microsoft to become the world’s most valuable public company. The rise not only boosted Nvidia’s stock but also significantly increased CEO Jensen Huang’s net worth.
What Happened Around NVIDIA in the 3rd Week of June 2024:
Nvidia’s shares rose by approximately 0.6% to over $136 during after-hours trading on Wednesday morning, coinciding with U.S. market closure for Juneteenth observance.
The uptick followed Nvidia’s record high close on Tuesday at $135.58, marking a more than 3.5% increase.
Other chip stocks also saw gains, particularly in Asia, home to major tech manufacturers and Nvidia’s competitors.T
aiwan Semiconductor Manufacturing Company (TSMC), a key player in the AI sector, surged more than 4% by Taipei’s market close.
Similarly, Hong Kong-listed Hua Hong Semiconductor and Semiconductor Manufacturing International Corp climbed by 0.4% and 1% respectively.
South Korean giants Samsung Electronics and SK Hynix experienced initial gains of up to 7%, though these moderated to 1.75% and 0.43% by Seoul’s market close.
NVIDIA Tranformation
Nvidia’s ascent from a gaming chip manufacturer to an AI powerhouse underscores its rapid evolution in the tech industry. Recently surpassing Microsoft in market valuation, Nvidia has capitalized on the booming demand for specialized AI chips, fueled by advancements like OpenAI’s ChatGPT.
Since 2022, Nvidia has experienced exponential growth, with its market capitalization skyrocketing from $16 billion to $3 trillion by mid-2024. This meteoric rise reflects the increasing significance of AI technologies, propelling Nvidia shares up by over 170% this year alone.
Impact on Wealth
The AI boom has not only elevated Nvidia’s market position but also propelled CEO Jensen Huang’s wealth. Following the recent stock surge, estimation on Huang’s net worth at $118.7 billion, making him the 11th richest person globally. His wealth surge of $4 billion in a single day underscores Nvidia’s pivotal role in the tech industry’s competitive landscape.
As Nvidia continues to dominate the AI market, its unprecedented growth trajectory highlights the intensifying competition among tech giants striving to lead in AI innovations.
This latest rally in chip stocks, led by Nvidia, signals ongoing market confidence in the company’s strategic direction and its pivotal role in shaping the future of artificial intelligence.
