New Delhi: Nvidia, the AI chipmaker, has surpassed Apple to become the world’s second most valuable company, trailing only Microsoft.
Nvidia achieved a historic milestone as its market capitalization exceeded $3 trillion, driven by the surge in demand for AI technologies.
During the latest trading session, Nvidia’s shares climbed by 5.16%, propelling its market cap to $3.01 trillion. Meanwhile, Apple experienced a modest increase of 0.78% with a market cap of $3 trillion.
Nvidia’s stock has seen a remarkable ascent, fueled by the rising demand for AI chips, resulting in a more than 200% increase in its stock price over the past year.
Over the last five years, Nvidia has delivered extraordinary returns to investors, exceeding 3,224%. The company is scheduled to execute a 10-for-1 stock split later this month.
Microsoft remains the world’s largest company by market cap at $3.15 trillion.
This isn’t the first instance where Nvidia has exceeded Apple in market cap; a similar occurrence took place in 2002 when both companies had valuations under $10 billion.
Nvidia’s stock surge can be attributed to the growing adoption of AI, which has spurred global demand for the company’s chips. Nvidia has committed to annual AI chip designs, signaling its proactive stance in the industry.
CEO Jensen Huang has characterized Generative AI as a new industrial revolution, underscoring Nvidia’s pivotal role in this transformative era.
Meanwhile, Apple has encountered challenges in 2024, including declining iPhone sales in China despite stable demand from the European Union.
