NVIDIA (NVDA)

US chip designer Nvidia became the third US company to reach a market valuation of more than $3 trillion (£2.4 trillion) on Wednesday, overtaking Apple (AAPL) to become the world’s second most valuable company.

Nvidia shares rose 5.2%, pushing its market cap above $3 trillion and making it the second-largest company in the world after Microsoft (MSFT).

Nvidia’s chips are the driving force behind the boom in artificial intelligence. The company has become the poster child of the AI ​​boom as demand for its processors from companies like Google (GOOG), Microsoft and Facebook-owned Meta (META) outstrips supply.

Nvidia shares — which are up nearly 150% so far this year — are also benefiting from its upcoming 10-for-1 stock split on Friday.

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Dan Coatsworth, investment analyst at AJ Bell, said the stock split will “lower the share price and make the company more affordable for investors who cannot afford to pay more than $1,000 per share. It will also benefit employees who invest a portion of their monthly salary in the company.”

Lululemon (LULU)

Lululemon beat Wall Street’s earnings and revenue estimates but gave weak second-quarter guidance as the company struggles with a slowdown in the Americas, its largest market.

The yoga pants maker also increased its share buyback authorization by $1 billion, marking the second time the company has increased its return to shareholders in six months. Lululemon shares rose 10 percent in premarket trading.

The company’s revenue rose 10% year over year to $2.2 billion in the quarter ended April 28, in line with forecasts. The revenue growth was driven by a 35% increase in sales in international markets – including a nearly 50% increase in China – while sales in the Americas rose just 3%.

CEO Calvin McDonald praised the “strong momentum” the company is experiencing in its international markets and suggested that more needs to be done in the Americas.

“We are pleased with the progress we are making in optimizing our U.S. product portfolio,” McDonald said. “Looking ahead, we continue to have a lot of growth potential and are confident in our team’s ability to deliver compelling results.”

Fever Tree (FEVR.L)

Premium drinks mixer brand Fever-Tree has reported growth across all its markets for 2024 as it looks to capitalise on the key summer sales season when more customers spend money on cocktails such as mojitos and margaritas.

Although no figures or forecasts were given in a relatively brief stock market update for the company’s annual general meeting, management stated that it remained “satisfied” with its expectations for the full year.

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The tonic maker said it had “strengthened its category leadership” in the UK, while in the US it “continues to be the largest contributor to growth in the carbonated mixer category”.

It said the brand continued to “deliver sales growth” year to date.

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Last year, the company reported a 23% decline in profits despite 6% revenue growth, but said it was “on track to double EBITDA” in 2024.

The rally in the metals market continues, with gold prices hitting $2,381 amid speculation about a rate cut by the US Federal Reserve.

The Institute for Supply Management (ISM) pointed out that the service sector of the US economy continues to grow, which is giving the golden metal a boost.

However, investors were surprised by the announcement that the trade body that sets the global gold price benchmark had launched an investigation after doubts were raised about the purity of some of the precious metals from a supplier.

The London Bullion Market Association (LBMA) said it is currently investigating allegations against the Indonesian state-owned mining company Aneka Tambang (Antam) regarding the purity of its gold products.

Aneka Tambang last week denied reports that 109 tonnes of fake ANTAM gold were circulating in the municipality between 2010 and 2021.

The Indonesian Attorney General’s Office has named six former managing directors of Antam’s precious metals processing and refining business unit as suspects in the alleged misuse of Antam’s stamping service.

The country plays a significant role in the global mining industry, but has also come under criticism because, according to a new study by Clark University, more than half of all tropical deforestation directly attributable to industrial mining occurs in Indonesia.

The LBMA, an industry association that requires gold refineries to source gold responsibly, said it had initiated an Incident Review Process (IRP) to examine the current circumstances.

Watch: Nvidia overtakes Apple as second most valuable company

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