- Nvidia overtakes Apple to become the world’s second most valuable company.
- Nvidia’s market value hits $3 trillion amid strong demand for AI chips.
- Apple’s market cap is slightly behind Nvidia, while Microsoft holds the top spot.
In a major shift in the tech industry, Nvidia has surpassed Apple to become the world’s second most valuable company. On Wednesday, Nvidia’s market value soared past $3 trillion, driven by a high demand for its AI processors. This surge reflects Nvidia’s critical role in the growing field of artificial intelligence.
Nvidia’s stock climbed 5.2%, closing at $1,224.40, which pushed its market capitalization to $3.012 trillion. This put Nvidia ahead of Apple, whose market cap was $3.003 trillion after a modest gain. Microsoft remains the most valuable company with a market value of $3.15 trillion.
The dramatic rise in Nvidia’s stock price, up 147% since early 2024, highlights the company’s influence in the AI revolution. Major tech firms like Microsoft, Meta, and Alphabet are seeking Nvidia’s high-performance chips to enhance their AI capabilities. Nvidia’s CEO, Jensen Huang, has become a prominent figure in the tech world, drawing large crowds at events like the recent Computex trade fair.
While Nvidia experiences this significant growth, Apple faces challenges such as slowing iPhone sales and increased competition in China. Some analysts believe Apple is falling behind in AI integration compared to its rivals. Despite this, Nvidia’s stock remains appealing to investors, trading at 39 times expected earnings, a significant drop from its peak of over 70 times expected earnings a year ago.
