Chipmaker Nvidia became the seventh-largest US company on Monday as it overtook Facebook parent Meta for the first time, according to Dow Jones Market Data. The firm finished the trading session with a market value of over $618 billion, while Meta closed at $612.2 billion. Shares of Nvidia were up 1.7%, while Facebook’s stock plunged 5.1%.
The chipmaker has been climbing rapidly up the market-cap leaderboard in recent years, driven by strong financial performance of its gaming and data-center businesses. It was the 15th-biggest US company as of a year ago and the 50th largest as of two years ago, Dow Jones Market Data shows.
The ramp up of Nvidia’s Ampere graphics processing unit (GPU) is still “early in its cycle,” according to Wells Fargo analyst Aaron Rakers, as quoted by Market Watch.
Nvidia previously held seventh spot when it overtook Berkshire Hathaway last November, but Monday marks the first time that the chip manufacturer is ahead of Meta.
Meanwhile, Zuckerberg’s company, which was the sixth-largest in the US as recently as Wednesday, has been struggling with a series of business challenges lately. Meta reported a weaker-than-expected outlook last week, which sent its shares diving nearly 20% after hours. It has warned that the rest of the year is shaping up to be a choppy one as it deals with “macroeconomic challenges” and continues its long-term strategic shift “towards building the metaverse.”
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