Nvidia Surpasses Apple, Becomes World’s Second Most Valuable Company

Nvidia has surpassed Apple to secure the spot to become the world’s second most valuable company. The AI chipmaker’s valuation soared past $3 trillion, driven by a growing appetite for its processors that drive artificial intelligence (AI).  Additionally, Nvidia’s stock experienced a remarkable increase, surging 5.2% to close at $1,224.40.

Also Read: Are Nvidia Shares Headed for a Triple Surge, Echoing Cisco’s Dot-Com Surge?

“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI. It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There’s a lot of retail money that’s piling in on what they see as a straight shot up.”

Jake Dollarhide, chief executive officer at Longbow Asset Management.

Nvidia capitalizes on AI revolution

Nvidia has become strongly linked with the rise of AI after the introduction of ChatGPT by OpenAI in 2022. It is worth noting Nvidia’s stock has surged by more than 140% this year. Additionally, it has seen a remarkable increase of over 3300% in the last five years.

Nvidia’s success is closely tied to the advancement of the technology industry as it plays a role in providing GPUs for training and deploying AI models. These GPUs are vital for the functionality of AI systems with applications like OpenAI’s ChatGPT. Big players such as Google, Microsoft, Meta, Amazon, and OpenAI are heavily investing in Nvidia’s GPUs solidifying it’s standing in the AI revolution.

Also Read: Nvidia Stock Is Trading Above $1,146 as the Company Nears $3 Trillion

In January 2022, Apple achieved a market capitalization of $3 trillion during trading hours, marking the first time a U.S. company had reached this milestone. Following suit in January 2024, Microsoft also attained a valuation of $3 trillion. Nvidia’s rapid growth, escalating from a market cap of $2 trillion in February to over $3 trillion in over three months, underscores the company’s strategic progress and strong presence in the market.

Nvidia announces high-powered AI chip releases

Nvidia’s CEO Jensen Huang recently announced the release of a high-powered version of its Blackwell chip, called Blackwell Ultra, slated for 2025. The company has also announced its intention to release a new AI chip platform, Rubin, in 2026 and the Ultra version of Rubin in 2027. These announcements are poised to strengthen Nvidia’s position as the leading supplier of AI chips and integrated software.

Also Read: NVIDIA’s New GPUs Elevate AI Design & Productivity

“For three decades we’ve pursued accelerated computing, with the goal of enabling transformative breakthroughs like deep learning and AI, generative AI is the defining technology of our time. Blackwell is the engine to power this new industrial revolution. Working with the most dynamic companies in the world, we will realize the promise of AI for every industry.”

Jensen Huang, founder and CEO of NVIDIA.

Due to the rise in stock price, the company recently declared a 10:1 stock split, which is expected to happen later this month. According to the company, this will help expand the accessibility of shares among investors.

Cryptopolitan reporting by Brenda Kanana