Nvidia has surpassed Apple’s market capitalization for the first time ever, becoming the second most valuable company in the world after a year of significant stock gains driven by the artificial intelligence trend. At market close on Wednesday, Nvidia’s market cap reached $3.012 trillion, exceeding Apple’s $3.003 trillion.
This achievement marks a significant milestone for Nvidia, as the company had started the year with a market value of $1.2 trillion, which was less than half of Apple’s market value at the time. Nvidia’s stock price closed at an all-time high of $1,224.40 on Wednesday, up more than 5%, with gains continuing in after-hours trading.
Nvidia’s success in the semiconductor market is attributed to its unique and fast-produced chips that power artificial intelligence products. The company has prominent customers like Apple, Meta, and Microsoft, with the latter accounting for 15% of Nvidia’s revenue. Goldman Sachs research estimates that around 80% of semiconductor chips used for generative AI technology are designed by Nvidia.
With its stock price more than doubling this year and trading up over 147% since the beginning of January, Nvidia’s future earnings potential looks promising. The company’s upcoming 10-for-1 stock split after market close on Friday will make its stock more accessible to investors, further fueling its growth trajectory.
In conclusion, Nvidia’s success in surpassing Apple’s market capitalization is a result of its strong position in the semiconductor industry and its ability to deliver cutting-edge technology solutions that meet growing demand for artificial intelligence products. As such, it remains an exciting investment opportunity for those looking to capitalize on this rapidly growing trend in tech.
