Nvidia Corp. took over the seventh spot in U.S. market capitalization rankings Tuesday, moving ahead of Berkshire Hathaway Inc. for the first time.
Shares of Nvidia
increased 2.2% to $264.01 Tuesday, while shares of Berkshire Hathaway
rose 0.6% to $287.93. At those closing prices, Nvidia has a market capitalization of $660 billion, ahead of $652.4 billion for Warren Buffett’s Berkshire, according to FactSet.
Tuesday’s stock movement extends a strong rally for Nvidia shares, which have more than doubled over the past year and risen nearly 7500% over the past decade. In comparison, Berkshire shares are up about 40% in the past year and 270% over a 10-year span.
Nvidia has gained almost $530 billion in market value off its pandemic low set March 16, 2020, according to Dow Jones Market Data. Since hitting that pandemic low, Nvidia has added more in market cap than the current market values of Visa Inc.
JPMorgan Chase & Co.
and Walmart Inc.
The company’s market-cap gains since the March 2020 low are also larger than the combined market values of Intel Corp.
and Broadcom Inc.
per Dow Jones Market Data. The gains amount to a figure just shy of Taiwan Semiconductor Manufacturing Co. Ltd.’s
current market value, which stands at about $553 billion.
Nvidia could be a beneficiary of increased spending by Facebook parent company Meta Platforms Inc.
which gave a higher-than-expected forecast last week for its capital expenditures. The social-media company is focusing on using artificial intelligence and machine learning to beef up its recommendations for users, a trend that some analysts think will result in new business for Nvidia as well as Arista Networks Inc.
which enjoyed a record bump on Tuesday after earnings.