The Daily Chase: Nvidia joins $3 trillion club
BNN Bloomberg
Here are five things you need to know this morning.
Nvidia joins $3T club: The dizzying rise of chipmaker Nvidia passed a new waypoint yesterday, with the total value of the company topping US$3 trillion for the first time ever. It joins only two other companies in that valuation tier: tech giants Microsoft and Apple. The speed with which the company accomplished the feat is truly breathtaking. Consider that less than two years ago it was worth about one tenth of what it is today. It joined the $1 trillion club in the summer of 2023, when its blowout earnings forecast signaled how much potential the AI boom had. In a matter of months it has chased down the $2 trillion level, and now $3 trillion today. Technically Nvidia accomplished the $3 trillion feat in 31 years, even if the vast majority of the heavy lifting came in the last two. Even by that charitable timeline, it managed to accumulate a $3 trillion valuation 15 years faster than Apple did, and almost 18 years faster than Microsoft.
Parkland selling propane biz: Parkland Fuels has struck a deal to sell its Canadian commercial propane business to Avenir Energy for $115 million. The company says the deal is a big step toward its goal of selling off $500 million worth of non-core assets by the end of next year to focus on the main part of its business. The company has been under pressure from activist investors to turn its operations around or consider strategic alternatives, including a sale of the business. The company’s shares are down by about 18 per cent since February.
Lululemon shares surge on upgraded forecast: Shares of Lululemon are surging this morning after the Vancouver-based maker of athleisure raised its full-year profit forecast, and topped earnings expectations in its latest quarter. Comparable store sales were flat for the first quarter in the Americas, but offset by strong growth elsewhere. Sales grew 25 per cent internationally, in keeping with the company’s strategy to focus on Asian markets while consumer spending in the North American economy shows signs of cooling.