Nvidia has surpassed Apple to become the second most valuable company globally. It achieved a market capitalisation of USD 3.01 trillion on Wednesday.
The surge in Nvidia’s market value is largely attributed to its leadership in the AI space, fuelled by the success of its flagship H100 chip. Nvidia first hit the USD 1 trillion mark in May 2023 and by February 2024 it had reached USD 2 trillion, surpassing Amazon and Alphabet.
In its latest earnings call, Nvidia reported a profit of USD 14 billion, largely driven by robust AI chip sales. The company now trails only Microsoft, which has a market cap of USD 3.15 trillion. Nvidia’s stock is trading at over USD 1,224 per share, with a stock split planned for June 7. The move is expected to further attract investors.
Nvidia commands a dominant position in the AI accelerator market, holding between 70 to 95 percent of the market share for AI chips. The company is set to continue its innovation trajectory with plans to launch a new chip annually, including the anticipated Blackwell B200 GPU expected later this year.
This is the first time since 2002 that Nvidia has surpassed Apple in market value. Back then, both companies were valued at less than USD 10 billion each, and Apple had not yet launched the iPhone. Despite being the first to surpass USD 1 trillion and USD 2 trillion, Apple is currently facing challenges, including sluggish iPhone demand in China and lagging behind in AI technology adoption. It currently stands at USD 3 trillion.
However, Apple might soon address these issues with a major AI-related announcement expected at WWDC 2024, potentially involving a significant partnership with OpenAI.
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