Nvidia overtakes Apple to become world’s second-most valuable listed company
Nvidia’s stock has surged 147% so far in 2024
Shares of Nvidia rallied to record highs on Wednesday, with the artificial intelligence (AI) chipmaker’s stock market valuation hitting above the $3-trillion mark and overtaking Apple to become the world’s second-most valuable listed company.
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.
The surge in Nvidia’s stock market value above Apple’s underscores a shift in Silicon Valley, where the company cofounded by Steve Jobs has dominated since it launched the iPhone in 2007.
Microsoft, based in Redmond, Washington, remained the world’s most valuable listed company with a market value of $3.14-trillion as its shares climbed 1.5%.
Nvidia’s stock has surged 147% so far in 2024, with demand for its top-of-the-line processors far outstripping supply as Microsoft, Meta Platforms and Google-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology.
It has rallied nearly 30% just since May 22, when Nvidia issued its latest stellar revenue forecast.
In Wednesday’s trading session, Nvidia’s stock briefly hit an intraday record high of $1,223.59, giving it a value of $3.01-trillion at a moment when Apple’s stood at 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.
Apple’s market capitalisation was last at $3-trillion as its stock climbed 0.7%.
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%.
Nvidia CEO Jensen Huang this week was the subject of wall-to-wall coverage on Taiwanese television and was mobbed by attendees when he visited the Computex tech trade fair in Taipei, where he was born before moving to the US.
While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple is struggling with weak demand for iPhones and tough competition in China, the world’s biggest smartphone market.
Some investors also view Apple as lagging behind other technology heavyweights as they rush to build AI features into their products and services.
Reuters