Good Morning! It is Friday again, another week in the books! Today, I tweaked the Why it Matters section a little, with now just some key bullet points on the topic. I think it makes it easier to read and better to understand. If you have thoughts about this, feel free to share by replying to the email!

Today on the docket:

• Nvidia ripping through the stock market 🚀 

• We are going to Mars (and the ISS) 🧑‍🚀 

• High inflation finally over? 💶 

Enjoy your weekend and see you on Monday!

X Nils

MARKETS
Nvidia beats Apples

What happened
On Wednesday, Nvidia reached a market cap of 3 trillion dollars. Riding the on the AI wave, Nvidia also surpassed Apple on the list of most valuable companies, with Microsoft as only company left with a larger market cap. Nvidia is only the third company to reach a $3 trillion valuation.

Nvidia only passed the $1 trillion mark last summer and $2 trillion only four months ago. The accelerator of this growth: AI.

Why it Matters

• It is estimated that Nvidia has around 80% of the AI chip market and therefore has tremendous market power, especially with the rising demand for AI chips.

• Nvidia's order books are overflowing at the moment, indicating that a lot of AI compute has yet to hit the market and that the AI models we currently use are only the tip of the iceberg

• Based on the revenue that Nvidia, Apple, and Microsoft make ($79B, $381B, and $236B, respectively), a significant portion of Nvidia's value is based on the growth investors expect it to make over the coming years.

What’s Next
Today, Nvidia's stock will split 1-to-10, meaning that the stock will become more accessible for retail investors due to a lower price. Although the stock split itself will not increase or decrease the company's valuation, the increased accessibility to buy shares might, given Nvidia's immense popularity.

One of the major questions is whether Nvidia will maintain this pace with record-breaking growth and continue to beat revenue expectations time after time. If that is the case, nothing will stop Nvidia from becoming the first $4 trillion company (you heard it here first 😉).