Nvidia has surpassed Apple to become the world’s second-most valuable company, with its market capitalization exceeding $3 trillion after a recent surge in its stock price. On Wednesday, shares of Nvidia rose by 5.2 percent, closing at $1,224.40 and pushing the company’s market cap to $3.012 trillion. Microsoft, the current most valuable company, also saw a 1.91 percent increase in its stock price, while Apple saw a more modest 0.78 percent gain.
Nvidia’s impressive rally is a result of its strong performance in the market, driven by the high demand for its chips, especially in the field of artificial intelligence (AI). The company has experienced a remarkable 260 percent increase in revenues over the past year, as tech giants like Microsoft, Meta, Google, and Amazon invest heavily in AI technologies. This has contributed to Nvidia’s stock price more than doubling in value this year and tripling in value in 2023.
In response to its soaring stock price, Nvidia recently announced a 10-for-1 stock split, which will come into effect on Friday. This move aims to make ownership of Nvidia shares more accessible to employees and investors, potentially making the company even more attractive to the market. Meanwhile, Apple is facing challenges with slowing iPhone demand in China and concerns about its position in the AI race. As a result, Apple’s stock price has only increased by about 5 percent this year, lagging behind the broader market indexes.
