Nvidia Corporation has overtaken Apple to become the world’s second-most valuable company, with furious demand for the chipmaker’s shares pushing its valuation to over $3 trillion.
Shares of Nvidia Corporation (NVDA) gained 5.2 percent on Wednesday, closing at $1,224.40 and lifting the company’s market capitalization to $3.012 trillion. In comparison, Microsoft, the world’s most valuable company, rose by 1.91 percent, while Apple gained 0.78 percent.
Nvidia Corporation’s rally continues an extraordinary streak of gains for the California-based firm, whose graphics processing units (GPUs) have fueled a boom in artificial intelligence (AI). Over the past year, the company’s revenues have soared by more than 260 percent as tech giants such as Microsoft, Meta, Google, and Amazon race to roll out AI technologies.
The Nvidia Corporation stock price has more than doubled in value so far this year after more than tripling in value in 2023. Last month, Nvidia Corporation announced a 10-for-1 stock split “to make stock ownership more accessible to employees and investors.” The split, which goes into effect on Friday, is likely to make Nvidia Corporation (NVDA) stock even more attractive to small-time investors.
Nvidia Corporation’s remarkable growth underscores its pivotal role in the AI revolution, further cementing its position as a dominant player in the tech industry. With the Nvidia Corporation share price reaching new heights, the company’s stock continues to attract significant investor
Nvidia Corporation (NVDA) Triumphs Over Apple to Become World’s Second-Most Valuable Company
In a stunning turn of events, Nvidia Corporation has surpassed Apple to become the world’s second-most valuable company, fueled by extraordinary demand for its cutting-edge AI chips. This achievement propels Nvidia’s market valuation beyond the $3 trillion mark, signaling a monumental shift in the tech landscape.
Despite being the first to reach $1 trillion and $2 trillion market capitalizations, Apple is now grappling with weak iPhone demand in China and lagging in the AI race. The company’s stock price has only risen by about 5 percent this year, trailing behind the S&P 500 and tech-heavy Nasdaq indexes.
Nvidia’s CEO Plans Major Stock Sale Amid Surging Success
On Thursday, Apple’s shares hit an all-time high but fell later in the morning amid news that Nvidia’s Chief Executive Jensen Huang plans to sell some of his stock. Huang aims to sell up to $735 million of Nvidia stock based on a plan he adopted in March. Nvidia disclosed in a regulatory filing with the Securities and Exchange Commission that Huang intends to sell 600,000 shares by March 2025. Despite a 1% dip in shares, Nvidia’s market cap hit $3 trillion on Wednesday, surpassing Apple (AAPL).
Strong AI Demand Bolsters Nvidia’s Dominance
Hewlett Packard Enterprise (HPE) reported robust demand for its AI servers using Nvidia’s H100 chips. HPE’s CEO, Antonio Neri, confirmed Nvidia’s leadership in generative AI, highlighting high demand from enterprise customers, sovereign states, and hyperscale operations.
Nvidia plans to roll out its most advanced AI platform in 2026, incorporating next-generation memory to enhance processing times. Additionally, Foxconn announced plans to build an advanced computing center in Taiwan using Nvidia’s Blackwell chips. This follows Nvidia’s collaboration with Foxconn to build data centers for autonomous driving and electric vehicles. Tesla (TSLA), a leading EV player, currently uses Nvidia’s chips but plans to custom-build them in the future.
Nvidia’s Unstoppable Stock Surge Reaches New Heights
Last week, Nvidia shares soared above the 1,100 level for the first time after Tesla CEO Elon Musk indicated that Nvidia would supply chips for his AI startup, xAI. Musk’s startup raised $6 billion in the latest funding round and plans to build a supercomputer to support its AI chatbot.
Nvidia’s market cap is approaching $3 trillion, a milestone achieved by Magnificent Seven stock Microsoft (MSFT). Nvidia also announced a 10-for-1 stock split effective Friday, lowering the price of one share to just over $100. This move could potentially make Nvidia a candidate for the Dow 30, a price-weighted index. Previously, Apple (AAPL) and Amazon.com (AMZN) joined the Dow after stock splits.
