Nvidia surpasses Apple to become 2nd Most valuable company

Nvidia overtakes Apple to secure the second spot as the world’s most valuable company, boasting a market capitalization of $3.012 trillion.

Nvidia’s recent surge in market valuation is indeed a significant development in the tech sector. Their rise to a $3 trillion market valuation is remarkable. The increase in stock price to $1,224.40 per share, driven by a 5.2% gain in a single trading day, played a crucial role in this achievement. This surge propelled Nvidia to become the world’s second-most valuable company, surpassing Apple.

One of the key factors driving growth is the high demand for AI chips. Nvidia’s GPUs are essential for AI applications, and with major tech firms like Microsoft, Meta, Google, and Amazon expanding their AI capabilities, Nvidia’s revenue has significantly increased. The company’s stock value has more than doubled in 2024, following a 260% increase in revenues over the past year, mainly due to its critical role in the AI boom. Nvidia’s announcement of a 10-for-1 stock split effective on June 7 is aimed at making its shares more accessible to individual investors, potentially broadening its appeal in the stock market.

In comparison, Apple, despite its previous achievements in reaching $1 trillion and $2 trillion market capitalizations, is facing challenges. These challenges include weak iPhone demand, especially in competitive markets like China, and a perception that Apple is lagging behind in AI integration compared to other tech giants. While Apple’s market capitalization currently stands at $3 trillion, with a 0.78% gain in the same trading session, Nvidia’s rapid gains and focus on AI have propelled it ahead of Apple in terms of market value. This shift reflects the evolving dynamics in the tech sector and highlights the importance of AI in driving company valuations.

This acquisition of Arm Holdings, a semiconductor and software design company, for $40 billion has also played a key role in its growth.

This acquisition has positioned Nvidia as a major player in the semiconductor industry, allowing it to diversify its product offerings and expand its market reach. On the other hand, Apple continues to focus on its ecosystem of products and services, including the growth of its subscription services like Apple Music, Apple TV+, and Apple Arcade. These services have been a significant source of revenue for Apple and have helped offset the challenges in the hardware segment.

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