Nvidia overtook Apple to take the second spot as the most valuable corporation in the world.
In fact, Nvidia broke the $3 trillion valuation barrier.
Nvidia Overtakes Apple; Becomes Second Most Valuable Corporation
This valuation was driven by the unquenchable demand for Nvidia’s processors, which are the foundation of artificial intelligence.
With a 5.2% increase in stock price, Nvidia’s market capitalization reached $3.012 trillion. Following a slight 0.8% increase, Apple’s market value finally reached $3.003 trillion. With a $3.15 trillion market capitalization, Microsoft maintained its number one position.
The company’s critical position in the AI revolution was highlighted by the startling 147% gain in Nvidia’s stock price since the beginning of 2024. Tech behemoths like Microsoft, Meta, and Alphabet are vying for Nvidia’s high-performance CPUs.
The market was rocked by Nvidia’s incredible revenue projection, which was released on May 22nd and drove the stock higher by around 30%.
The ten-for-one stock split that Nvidia is planning to implement on June 7th is anticipated to increase interest from private investors even further. The domination of Nvidia was indicative of a larger trend in the computer industry, where AI is becoming a major arena of conflict.
Nvidia CEO Becomes Global Tech Star
The CEO of Nvidia, Jensen Huang, has become a global tech star, drawing enormous crowds to events like the most recent Taipei trade expo, Computex. Apple is facing difficulties from declining iPhone sales and heightened competition in the vital Chinese market.
According to several observers, Apple is not incorporating AI as quickly enough into its goods and services. Despite its remarkable growth, Nvidia’s stock is still appealing based on estimates for future profits.
After peaking at more than 70 times expected earnings a year ago, the company is now trading at 39 times forecast earnings, a considerable decline.
In March 2024, Nvidia surpassed Saudi Aramco while claiming the third-place spot among the world’s largest companies by market capitalization, as per the Spectator Index, which is the name of a popular X(Twitter) account having 2.7 million followers.
On the first day of March, Nvidia’s stock market value closed above $2 trillion for the first time following an upbeat report from Dell Technologies which has reignited Wall Street’s AI-fueled rally.
