On Wednesday, Nvidia’s stock reached a record high, reaching a market valuation of $3tn and surpassing Apple to become the world’s second most valuable company. The chipmaker’s stock was up 5.16% at $1,224.40, while Apple’s stock climbed 0.78%, resulting in a market capitalization of $3.00tn at market close.
Nvidia’s impending 10-for-one stock split, set for June 7, could increase its appeal to individual investors. This milestone for Nvidia highlights a shift in Silicon Valley, where Apple has been dominant since the launch of the iPhone in 2007. However, Nvidia’s surge in market value above Apple emphasizes the increasing importance of AI computing capabilities in the tech industry.
Microsoft remains the most valuable company, with a market value of $3.14tn, the only other company besides Nvidia to reach such a high valuation. The demand for Nvidia’s processors continues to exceed supply as companies like Microsoft, Meta Platforms, and Alphabet prioritize AI technology in their operations. Nvidia’s recent rally, spurred by a strong revenue forecast, has boosted chip stocks overall, with the PHLX chip index surging about 4%. Super Micro Computer, which uses Nvidia chips in its AI-optimized servers, also saw a nearly 5% increase in stock value.
Nvidia’s CEO Jensen Huang attracted widespread attention during his visit to the Computex tech trade fair in Taipei while some investors perceive that Apple is falling behind other tech giants in integrating AI features into their products and services despite its strong presence on Wall Street
