Nvidia has surpassed Apple to claim the spot of the world’s second-most valuable company, reaching a market capitalization exceeding $3 trillion. This achievement follows a notable surge in demand for Nvidia’s shares, propelling the chipmaker’s stock price to new heights.
The California-based company saw its shares climb by 5.2 percent on Wednesday, closing at $1,224.40 and securing a market capitalization of $3.012 trillion. In comparison, Microsoft, currently holding the title of the world’s most valuable company, experienced a 1.91 percent increase in its stock price, while Apple saw a more modest gain of 0.78 percent.
Nvidia’s recent rally is part of a remarkable trend for the company, which has seen its revenues skyrocket by more than 260 percent over the past year. This surge can be attributed to the increasing demand for the company’s graphics processing units, particularly in the realm of artificial intelligence (AI).
The tech industry giants like Microsoft, Meta, Google, and Amazon are racing to integrate AI into their operations, driving up the demand for Nvidia’s products. As a result, Nvidia’s shares have more than doubled in value since the beginning of the year, following a tripling in value throughout 2023.
In a move to make stock ownership more accessible, Nvidia announced a 10-for-1 stock split set to take effect on Friday. This decision is expected to further enhance the company’s attractiveness to investors and employees alike.
Meanwhile, Apple, the first company to break the $1 trillion and $2 trillion market capitalization milestones, is facing challenges, including sluggish iPhone demand in China and concerns about its AI adoption pace. Apple’s stock price has increased by only about 5 percent this year, lagging behind the broader market indices like the S&P 500 and Nasdaq.
With its ongoing success and groundbreaking innovations in AI, Nvidia’s ascent to the world’s second most valuable company underscores the growing significance of technology in today’s market landscape.
