Nvidia, a chip manufacturer, has overtaken Apple to become the world’s second-most valuable company. Its market capitalization has surpassed $3 trillion due to strong demand for its shares. This surge in valuation is driven by the growing interest in Nvidia’s graphics processing units, especially in the field of artificial intelligence (AI).
Meanwhile, Microsoft, the most valuable company in the world, also experienced a rise in its stock price by 1.91 percent. Apple’s gain was modest at 0.78 percent. Nvidia’s impressive rally continues a trend of significant gains for the company, as its revenues have seen a staggering 260 percent rise over the past year. Major tech companies like Microsoft, Meta, Google, and Amazon are driving this growth through the adoption of AI technology.
Nvidia’s stock has doubled in value this year and is expected to triple in 2023. In response to this growth, the company announced a 10-for-1 stock split to increase accessibility for both employees and investors. This move is effective on Friday and is expected to further enhance the company’s appeal to potential investors.
In contrast, Apple, which was the first company to reach market capitalization milestones of $1 trillion and $2 trillion, is facing challenges such as sluggish demand for its iPhones in China and perceptions of lagging behind in AI adoption. While Apple’s stock price has only seen a 5 percent increase this year, it falls short compared to the broader market indices like the S&P 500 and Nasdaq.
