Nvidia has surpassed Apple to become the world’s second-most valuable company, with its market capitalisation exceeding $3 trillion after a recent rally in stock price. This is due to the high demand for the company’s shares, driven by its graphics processing units that have fuelled the growth of artificial intelligence. Over the past year, Nvidia’s revenues have surged more than 260 percent as tech giants like Microsoft, Meta, Google, and Amazon rush to implement AI solutions.
Nvidia’s impressive rally reflects the high demand for its shares. The company’s stock has more than doubled in value this year, following a significant increase in 2023. To make stock ownership more accessible, Nvidia announced a 10-for-1 stock split set to take effect on Friday. This move is expected to make the company’s shares even more appealing to investors. Meanwhile, Apple is facing challenges such as sluggish iPhone demand in China and perceived lag in AI adoption.
While Apple’s stock price has only risen about 5 percent this year, Nvidia’s remarkable performance has propelled it to the position of the world’s second-most valuable company. With continuous growth in demand for AI technologies, Nvidia’s value and market capitalization continue to soar, solidifying its position as a key player in the tech industry.
