Nvidia Overtakes Apple as Second Most Valuable Company
Nvidia’s market value has surged past Apple’s, making it the world’s second most valuable company. The AI chipmaker’s stock split and soaring demand for its processors have fueled this growth.
Nvidia’s dominance in the AI chip market
Nvidia’s stock rallied to record highs on Wednesday, with the artificial intelligence chipmaker’s valuation breaching the $3 trillion mark and overtaking Apple to become the world’s second most valuable company.
“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” said Jake Dollarhide, chief executive officer at Longbow Asset Management.
Nvidia is preparing to split its stock ten-for-one, effective on June 7, a move that could increase its appeal to individual investors. The surge in Nvidia’s market value above Apple’s marks a shift in Silicon Valley, which the company co-founded by Steve Jobs has dominated since it launched the iPhone in 2007.
Nvidia’s stock rose 5.2% to end the day at $1,224.40
Nvidia’s market capitalization was last at $3.012 trillion. Apple’s market capitalization was last at $3.003 trillion after its stock climbed 0.8%. Microsoft, based in Redmond, Washington, remained the world’s most valuable company at $3.15 trillion after its shares climbed 1.9%.
“It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There’s a lot of retail money that’s piling in on what they see as a straight shot up,” said Jake Dollarhide.
Nvidia’s dominance in the AI chip market
The AI chipmaker’s growth is fueled by the increasing demand for its processors, which are used in various applications, including artificial intelligence, gaming, and data centers. As the company continues to innovate and expand its product line, its market value is expected to continue to rise.
Nvidia’s headquarters in Santa Clara, California
In conclusion, Nvidia’s surge in market value is a significant shift in the tech industry, and it will be interesting to see how the company continues to grow and innovate in the future.
