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Nvidia Surpasses Apple to Become World's Second-Most-Valuable Company

8 Jun 2024 02:15

Islam Times - Nvidia has surpassed Apple in market value, becoming the second-most-valuable company globally, following a significant rise in its stock price.

Nvidia's market capitalization surged past the $3 trillion mark on Wednesday, positioning the chip giant just behind software behemoth Microsoft, according to Reuters.

This shift marks a significant change in Silicon Valley, where Apple has dominated since the iPhone's launch in 2007.

Nvidia's shares climbed 5.2% on Wednesday to over $1,224, resulting in a market value of $3.012 trillion.

In comparison, Apple's market capitalization stood at $3.003 trillion that day.

By Thursday, both companies' shares had slightly declined, equalizing their market capitalization at $2.98 trillion.

Microsoft , the maker of the Windows operating system that is also a key player in the artificial intelligence (AI) industry, retained its position as the most valuable company globally, with a market capitalization of $3.16 trillion as of Thursday.

Nvidia's rise is largely attributed to its announcement of a ten-for-one stock split, which aims to make the stock more accessible to individual investors.

Investors holding Nvidia's stock at the end of trading on Thursday will receive nine additional shares for each share they own.

"The value of shares will be reduced by a factor of 10," noted Reuters.

Jake Dollarhide of Longbow Asset Management stated, "Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI."

He suggested that it might be a "foregone conclusion" that Nvidia could overtake Microsoft as well.

So far this year, Nvidia's stock has surged by 147%, driven by the high demand for its processors, which has outstripped supply.

Meanwhile, Microsoft and Meta continue to expand their AI computing capabilities.

Founded in 1993, Nvidia initially focused on computer chips for graphics processing, particularly for gaming.

It later integrated machine learning features into its chips, expanding its market share.

The surge in investment in AI technology has fueled the company's rapid growth.

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