Nvidia has surpassed Apple to become the world’s second-most valuable company, with its market capitalisation exceeding $3 trillion following a recent surge in stock prices.
The chipmaker’s shares experienced a 5.2 percent increase on Wednesday, closing at $1,224.40 and propelling its market capitalisation to a staggering $3.012 trillion. This significant milestone places Nvidia ahead of Apple in terms of overall value, trailing only behind Microsoft, the world’s most valuable company.
Nvidia’s extraordinary growth can be attributed to the soaring demand for its graphics processing units, which have played a key role in driving the expansion of artificial intelligence (AI). The company’s revenues have increased by over 260 percent in the past year, with major tech players such as Microsoft, Meta, Google, and Amazon competing to integrate AI technology.
In addition to its meteoric rise in market value, shares of Nvidia have more than doubled in value since the beginning of the year, following a threefold increase in 2023. Last month, the company further strengthened its position by announcing a 10-for-1 stock split, aimed at increasing accessibility to stock ownership for employees and investors. This move, set to take effect on Friday, is expected to enhance the company’s appeal to potential investors.
On the other hand, Apple, once the first company to exceed the $1 trillion and $2 trillion market capitalisation milestones, is facing challenges such as subdued demand for its iPhones in China and a perceived lag in AI adoption. This has resulted in Apple’s stock price experiencing only a modest 5 percent increase since the beginning of the year, trailing far behind the broader market indexes.
Nvidia’s rise to the position of second-most valuable company in the world not only reflects its own success but also highlights the growing significance of AI technology in today’s market. This significant achievement solidifies the company’s standing as a key player in the global tech industry and sets the stage for further growth and innovation in the future.