Ordinary people who do not watch stock markets or business news will pay little attention to the changing of the guard.
On Tuesday, Nvidia (NVDA) gained 3.51%, closing at $135.58, to command a market capitalization of $3.335 trillion. This surpasses Microsoft’s (MSFT) market cap. Of $3.317 trillion. People who do not invest may be familiar with Microsoft, Apple (AAPL), Amazon (AMZN), Netflix (NFLX), or Alphabet (GOOG). Nvidia is not a well-known brand outside of the artificial intelligence hardware market. Before 2023, gamers knew the graphics chip supplier for its GPU product, the RTX series.
Nvidia shares more than doubled in the last 12 months and are up by over 3,400 percent in the last five years.
After the company split its shares 10-for-one, retail investors piled on NVDA stock. The post-split share price also attracted options traders. They prefer stocks with good gamma. Per Charles Schwab’s website, gamma is the potential increase or decrease in an option’s delta when the stock changes by $1.00.
In the real-world economy, U.S. retail sales increased by 0.4% in May 2024. The Commerce Department also revised April sales down 0.2%. It also revised March sales lower. Elevated interest rates continue to push banks to tighten access to credit. This hurts retail demand.
