Nvidia Overtakes Apple as the World's Second Most Valuable Corporation Amid the AI Boom

By Consultants Review Team Thursday, 06 June 2024

Nvidia surpassed Apple to become the world's second most valuable corporation, marking a dramatic change in the technology landscape. The AI chipmaker's value has surpassed $3 trillion, driven by an insatiable demand for its processors, which power the growing area of artificial intelligence.

Nvidia's shares rose 5.2% to settle at $1,224.40, raising its market capitalization to $3.012 trillion. This rise surpasses Apple, whose market capitalization finished at $3.003 trillion following a slight 0.8% increase. Microsoft Corp. (MSFT.O) maintains its lead with a market capitalization of $3.15 trillion.

Nvidia's stock price has skyrocketed 147% since the beginning of 2024, highlighting the company's critical position in the AI revolution. Microsoft, Meta, and Google's parent company Alphabet are all fighting for Nvidia's high-performance CPUs to improve their AI capabilities.

This astonishing growth spike comes after Nvidia issued a great sales projection on May 22nd, which sent shockwaves through the market and sent the stock up about 30%. The company's forthcoming ten-for-one stock split, which will take effect on June 7th, is likely to pique individual investors' interest even further.

Nvidia's supremacy mirrors a larger trend in the technology industry, with AI emerging as a significant battlefield. Jensen Huang, the company's CEO, has become a worldwide tech star, attracting large audiences to events such as the recent Computex trade show in Taipei.

Meanwhile, Apple is facing headwinds from declining iPhone sales and more competition in the critical Chinese market. Some experts also believe the internet behemoth is falling behind in incorporating AI into its goods and services.

Despite its strong expansion, Nvidia's stock remains attractive in terms of future profit expectations. The business is presently trading at 39 times projected profits, a considerable decrease from its prior high of more than 70 times predicted earnings a year ago.

Current Issue