‘s latest rally has the stock less than $10 billion away from passing
to become the fifth largest by market capitalization.
That would have seemed ridiculous just five months ago. At that point Nvidia stock had fallen 62% from the start of 2022 through its low on Oct. 14, leaving it with a market cap of just $279.6 billion, as worries about the chip sector and valuation weighed on the shares. Berkshire, on the other hand, dropped 12% through its own low on Oct. 12, when it was valued at $588.5 billion.
My how things have changed. A change in market sentiment helped Nvidia find a low in October, while the rise of ChatGPT and other artificial-intelligence technology provided the catalyst for a massive move in the stock (AI needs a lot of chip power to work, never mind that the money won’t really start flowing into the coffers until some unspecified future date). As a result, Nvidia’s stock has gained 84% in 2023, leaving Berkshire, which has dipped 1.5%, in its dust.
Now, Nvidia has a market capitalization of $664.6 billion, leaving it just $8.4 billion behind Berkshire’s $673 billion. With the way Nvidia stock is moving, the offs seem pretty good it will close the gap.
Nvidia stock has gained 2.8% Wednesday, while Berkshire Hathaway’s Class B shares have risen 0.1%. The
has fallen 0.2%, while the
Dow Jones Industrial Average
has declined 0.3%, and the
is little changed.
Write to Ben Levisohn at email@example.com