NVIDIA OVERTAKES APPLE BY MARKET CAP
Nvidia, a major player in chipmaking, has surged ahead in value, briefly overtaking Apple as the second most valuable publicly traded company. Nvidia’s stock rose by 5.2% to $1,224.40 per share, pushing its market cap to $3.012 trillion, surpassing Apple’s $3.003 trillion. This marks a significant moment, as Apple has long been a dominant force in Silicon Valley since the iPhone’s introduction in 2007. Microsoft remains the most valuable company globally at $3.15 trillion. Nvidia plans a 10-for-1 stock split on June 7th to make its stock more accessible to individual investors.
Nvidia’s success is driven by the high demand for its AI processors, essential for AI technology development. Major tech firms like Microsoft, Meta Platforms, and Alphabet are heavily investing in AI, contributing to Nvidia’s 147% stock increase in 2024. Nvidia’s focus shifted from gaming GPUs to AI, capturing an estimated 80% market share in AI chips for data centers. Its data center business revenue saw a 427% year-over-year increase to $22.6 billion.
In contrast, Apple’s growth has been slower, with only a 5% stock rise this year. Recent reports show a 4% decline in overall sales and a 10% drop in iPhone sales. Apple faces challenges such as fluctuating demand in China and manufacturing issues, compounded by mixed responses to its new VR headset, Vision Pro. Apple’s shares are currently priced at $195.87.
