Nvidia has surpassed Apple’s market capitalization on Wednesday, becoming the second most valuable company in the world after experiencing significant stock gains driven by the artificial intelligence trend. At market close, Nvidia’s market cap stood at $3.012 trillion, surpassing Apple’s $3.003 trillion.
The company’s strong performance can be attributed to its success in the semiconductor market, particularly in producing chips that power artificial intelligence applications. According to research from Goldman Sachs, approximately 80% of the semiconductor chips used for generative AI are designed by Nvidia. This dominance in the AI chip market positions Nvidia for significant future earnings potential.
Nvidia’s impressive list of customers includes tech giants like Apple, Meta, and Microsoft, with the latter contributing around 15% of Nvidia’s revenue. To make its stock more accessible to investors, Nvidia will undergo a 10-for-1 stock split after market close on Friday. This move is expected to attract more investors to the company’s high-performing stock.
Earlier this year, Nvidia had already exceeded the market caps of companies like Amazon and Google. Despite this achievement, Nvidia still falls short of Microsoft’s market cap of $3.1 trillion. However, with its continued success in producing AI-powered semiconductors and impressive growth potential, it is likely that Nvidia will continue to climb up the ranks as one of the most valuable companies in the world.
In summary, Nvidia overtook Apple’s market capitalization on Wednesday due to significant stock gains driven by artificial intelligence trend and its dominance in AI chip market positioning it for future earnings potential . Its impressive growth potential has made it an attractive investment opportunity for many investors who expect it to continue climbing up as one of the most valuable companies in the world.
