Nvidia, the renowned chip designer, has made a remarkable achievement by surpassing Apple’s market capitalization for the first time ever. This milestone solidifies Nvidia’s position as the second most valuable company globally, trailing only Microsoft. The driving force behind Nvidia’s success is the surge in demand for artificial intelligence technology, which has propelled the company’s stock to unprecedented heights.
Nvidia’s market cap now stands at a staggering $3.012 trillion, compared to Apple’s $3.003 trillion. This remarkable feat has overshadowed the likes of Amazon and Google, showcasing Nvidia’s dominance in the tech industry. The company’s share price reached a new all-time high on Wednesday, closing at $1,224.40 and continuing to climb in after-hours trading.
Nvidia’s journey to this pinnacle began at the start of the year, when its market value was less than half of Apple’s $3 trillion. However, the company’s stock has more than doubled in price, surging by an impressive 147% since January, when it traded around $481 per share.
According to Goldman Sachs research, Nvidia’s semiconductor chips account for an estimated 80% of the chips used to power generative AI technology, further solidifying the company’s position as a leader in the field of artificial intelligence.
Nvidia is known for its exceptional computer chips that can energize AI-driven products. It boasts an impressive client list, including tech giants like Apple, Meta, and Microsoft, with the latter estimated to make up 15% of Nvidia’s revenue. The company’s dominance in the AI chip market suggests substantial future earnings prospects. Furthermore, Nvidia’s stock will undergo a 10-for-1 split after the market closes on Friday, making it more accessible for investors to acquire the company’s shares.
