Trending tickers: Nvidia, Lululemon, Fever-Tree and gold

Nvidia overtakes Apple as its market capitalisation surpasses $3tn (Reuters / Reuters)

Nvidia (NVDA)

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

Nvidia’s shares jumped 5.2%, propelling its market capitalisation to more than $3tn to become the world’s second-largest company behind Microsoft (MSFT).

Nvidia’s chips are powering much of the rush into AI, which has seen it become a poster child of the AI boom, with demand for its processors from the likes of Google (GOOG), Microsoft and Facebook owner Meta (META) outstripping supply.

Nvidia’s shares – up nearly 150% so far this year – are also being boosted by an upcoming move to split its stock by 10-to-one on Friday.

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Dan Coatsworth, investment analyst at AJ Bell, said the stock split will “bring its share price down and make it more affordable to investors who cannot afford to splash out more than a grand per share, as well as benefit employees who use some of their monthly pay packets to invest in the company.”

Lululemon (LULU)

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

The yoga pants maker also raised its share buyback authorisation by $1bn, the second time in six months that the company has increased its returns to shareholders. Shares of Lululemon jumped 10% in pre-market trading.

The company’s revenue grew by 10% year over year to $2.2bn in the quarter ended April 28, in line with projections. Top-line growth was driven by a 35% revenue increase from international markets — including a nearly 50% increase in China — while in the Americas sales rose by a mere 3%.

CEO Calvin McDonald touted the “strong momentum” the company is seeing in its international markets and hinted that it needs to do more work in the Americas.

“We are pleased by the progress we are making to optimise our US product assortment,” said McDonald. “Looking ahead, we continue to have a significant runway for growth and are confident in our team’s ability to powerfully deliver.”

Fever-Tree (FEVR.L)

Premium drink mixer brand Fever-Tree has reported growth across its markets in 2024 as it looks to capitalise on the key summer selling season when more customers spend on cocktails like mojitos and margaritas.

While no numbers or guidance was given in a relatively short trading update to accompany the company's annual general meeting, management said it remained "comfortable" with full-year expectations.

The tonic maker said it has “strengthened its category-leading position” in the UK, while it “continues to be the biggest contributor to growth within the carbonated mixer category” in the US.

It said the brand has continued to “deliver topline growth in the year to date.”

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Last year, the company saw profits fall 23%, despite sales growing 6%, but said it was "on track to double EBITDA" in 2024.

Gold (GC=F)

The rally in the metal market continues with gold touching $2,381 amid speculation that the US Federal Reserve will cut rates.

The Institute for Supply Management (ISM) showed the US economy continues to expand in its service sector, boosting the golden metal.

However, investors were caught by surprise over the announcement that a review has been launched by the trade body, which sets the global benchmark for gold prices, after doubts were raised about the purity of some precious metals from a supplier.

The London Bullion Market Association (LBMA) said it is reviewing allegations involving Indonesian state miner Aneka Tambang (Antam) over the purity of its gold products.

Aneka Tambang last week denied reports that there were 109 tons of counterfeit ANTAM gold circulating in the community in the period 2010-2021.

Indonesia’s Attorney General Office has named six former general managers at Antam’s Precious Metal Processing and Refining Business Unit as suspects for alleged misuse of Antam’s stamping service.

The country is a major player in the global mining industry but has faced criticism as more than half of all tropical deforestation directly attributable to industrial mining takes place in Indonesia, according to new research conducted at Clark University.

LBMA, an industry body whose rules for gold refineries require that they source gold responsibly, said that an Incident Review Process (IRP) has been invoked to review the current circumstances.

Watch: Nvidia passes Apple as second-most valuable firm

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