- Nvidia surpasses Apple, reaching a $3 trillion market value, making it the world’s second most valuable company.
- Nvidia’s stock rallied to a record high of $1,223.59, giving it a market value of $3.010 trillion, surpassing Apple’s valuation of about $3.005 trillion.
- The chipmaker’s stock has risen nearly 30% since May 22, fueled by optimism about AI and an upcoming ten-for-one stock split, while Apple faces challenges with weak iPhone demand and stiff competition in China.
OUR TAKE
Nvidia’s market value has risen to become the world’s second most valuable company, which is a new benchmark for both the chip industry and artificial intelligence. For investors, it means more options in the face of weak market demand for Apple.
–Sissy Li, BTW reporter.
Nvidia’s stock market value exceeded $3 trillion on Wednesday, a record high, surpassing Apple. Nvidia’s stock rally is currently in the midst of a stock split, and investors will focus on this part. Due to the investment in AI in chips, the chip market value on the Philadelphia Stock Exchange has also been driven up. On the other hand, under huge market pressure, investors are conservative about Apple’s trend.
Also read: Tesla to spend up to $4B on Nvidia hardware
Aso read: Nvidia and Salesforce boost AI startup Cohere in $450M round
Nvidia reaches $3 trillion market value
Shares of Nvidia rallied to record highs on Wednesday, with the AI chipmaker’s stock market valuation hitting the $3 trillion mark and overtaking Apple to become the world’s second most valuable company. In Wednesday’s trading session, Nvidia’s stock briefly hit an intra-day record high of $1,223.59, giving it a value of $3.010 trillion, surpassing Apple’s valuation of about $3.005 trillion. The chipmaker’s stock was last up 4.9% at $1,221.51, giving Nvidia a market value of $3.004 trillion, while Apple’s market capitalisation stood at $3.00 trillion as its stock climbed 0.7%.
Stock split and revenue forecast
The latest rally in Nvidia comes as it prepares to split its stock ten-for-one, effective on June 7, a move that could increase its appeal to individual investors. Nvidia’s stock has rallied nearly 30% since May 22, when the company issued its latest stellar revenue forecast. Optimism about AI lifted chip stocks broadly on Wednesday, with the PHLX chip index surging about 4%. Super Micro Computer, which sells AI-optimised servers built with Nvidia chips, climbed nearly 5%.
AI enthusiasm and market challenges
Nvidia CEO Jensen Huang has been the subject of extensive media coverage in Taiwan and was celebrated by attendees at the Computex tech trade fair in Taipei. While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple faces challenges with weak demand for iPhones and stiff competition in China, the world’s largest smartphone market. Some investors view Apple as lagging behind other technology heavyweights in integrating AI features into their products and services.
