Nvidia, a chipmaker, has surpassed Apple to become the world’s second-most valuable company, with its market capitalization exceeding $3 trillion. This remarkable achievement was driven by the surge in demand for Nvidia’s graphics processing units in the AI industry. On Wednesday, Nvidia’s stock price closed at $1,224.40 after increasing by 5.2 percent.
Nvidia’s revenues have seen an increase of over 260 percent in the past year as tech giants like Microsoft, Meta, Google, and Amazon are rapidly adopting AI solutions. The company’s stock has more than doubled in value this year and had already tripled in value in 2023. Nvidia announced a 10-for-1 stock split set to take effect on Friday, which is intended to make stock ownership more accessible to employees and investors potentially attracting more interest in the company’s shares.
On the other hand, Apple, the first company to reach the $1 trillion and $2 trillion market capitalisation milestones, is facing challenges with tepid demand for its iPhones in China and concerns about falling behind in AI innovation. Apple’s stock price has only increased by about 5 percent so far this year, lagging behind broader market indexes like the S&P 500 and Nasdaq. The competition between these tech giants highlights the fast-paced nature of the industry and the importance of staying ahead in cutting-edge technologies like AI.
In conclusion, Nvidia’s success story continues to unfold as it continues to lead the charge in AI technology while facing competition from companies like Apple who are struggling to keep up with emerging trends. As Nvidia continues to innovate and grow its business model around AI technology, it will likely continue to outpace its competitors and solidify its position as one of the most valuable companies globally.
