Nvidia surpasses Apple with $3 Trillion Market Cap, becoming World’s second most Valuable Company By Elets News Network - 06 June 2024

Nvidia, Apple

Nvidia’ market valuation soared past USD 3 trillion, on Wednesday overtaking Apple to become the world’s second most valuable company. The AI chipmaker’s stock surged 5.2 percent, closing at USD 1,224.40, resulting in a market capitalisation of USD 3.012 trillion. Meanwhile, Apple’s market cap stood at USD 3.003 trillion after a modest 0.8 percent rise in its stock price. Despite this shift, Microsoft retained its position as the world’s most valuable company with a market cap of USD 3.15 trillion, bolstered by a 1.9 percent increase in its share price.

Nvidia’s exceptional stock performance, which has climbed 147 percent so far in 2024, is driven by the insatiable demand for its advanced processors. Tech giants such as Microsoft, Meta Platforms, and Alphabet are fiercely competing to enhance their AI computing capabilities, significantly boosting demand for Nvidia’s products. Since May 22, Nvidia’s stock has rallied nearly 30 percent, spurred by an optimistic revenue forecast that further ignited investor enthusiasm.

In a strategic move to attract more individual investors, Nvidia is set to implement a ten-for-one stock split effective June 7. This initiative is expected to enhance the stock’s appeal and accessibility, potentially driving further gains.

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The AI-driven optimism also buoyed the broader semiconductor sector, with the PHLX chip index jumping 4.5 percent. Companies like Super Micro Computer, which specialises in AI-optimised servers using Nvidia chips, saw their shares rise by 4 percent.

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