Nvidia Overtakes Apple in Market Cap, Now Second Most Valuable US Company
Nvidia, the renowned chip manufacturer, made headlines on Wednesday by crossing the $3 trillion mark in market capitalization, surpassing iPhone producer Apple Inc. in the process. Nvidia’s shares surged by 5% on Wall Street, elevating its total market cap to $3.01 trillion, compared to Apple’s $2.99 trillion. With this significant milestone, Nvidia has now ascended to become the second most valuable publicly traded company in the United States, trailing only behind Microsoft, which boasts a market cap of $3.15 trillion.
This achievement is not Nvidia’s first instance of surpassing Apple in terms of market value. The last occurrence dates back two decades to 2002, a period before the launch of the revolutionary iPhone, when both companies were valued under $10 billion. Nvidia’s journey to its current market dominance began to accelerate when it first crossed the $1 trillion threshold in May 2023, followed by a leap to $2 trillion in February 2024.
The recent surge in Nvidia’s stock, which has risen by 29% in just nine trading sessions since the announcement of its quarterly results on May 22, reflects the market’s confidence in the company’s strong performance and strategic positioning. Nvidia is reported to hold an 80% market share in AI chips for data centers, a segment where major cloud providers are heavily investing billions.
For the most recent quarter, Nvidia reported a staggering 427% year-on-year increase in GPU sales, reaching over $22 billion and accounting for nearly 86% of its total revenue. The company also revealed a 10-for-1 stock split along with a significant 150% increase in its quarterly dividend, which has further bolstered investor confidence.
In stark contrast, Apple’s shares have only seen a modest 5% increase so far in 2024. The iPhone-maker is facing challenges, with its most recent earnings report revealing a 4% decline in overall sales and a 10% drop in iPhone sales compared to the same quarter last year. Apple is grappling with weakened demand in China and mixed reactions to its new virtual reality headset, Vision Pro.
Apple, the first company to reach the market cap milestones of $1 trillion, $2 trillion, and $3 trillion, has long held the title of the most valuable company. However, it was recently surpassed by Microsoft and now Nvidia, reflecting shifting dynamics in the tech industry. Apple’s growth appears to have stagnated in its core markets, while Nvidia’s innovative advancements, particularly in AI and data center technologies, have propelled it forward.
Nvidia’s shares closed 5.2% higher at $1,224.40 on Wednesday, further solidifying its market position. The company’s robust performance and strategic maneuvers indicate that it may soon challenge Microsoft for the top spot in market capitalization.
This remarkable ascent of Nvidia highlights the evolving landscape of the tech industry, where traditional giants like Apple face stiff competition from companies that are rapidly advancing in new technological frontiers. As Nvidia continues to innovate and capture significant market share in the booming AI sector, it is poised to shape the future of the technology industry and redefine market leadership.
For more such news, visit tech-news.in
