On Wednesday, Nvidia's stock soared to unprecedented heights, propelling the artificial intelligence chipmaker's market valuation past the $3 trillion mark, surpassing Apple and claiming the title of the world's second most valuable company.
Closing at $1,224.40, Nvidia's stock surged by 5.16%, culminating in a market capitalization of $3.01 trillion. Apple, on the other hand, with its stock rising by 0.78%, maintained a market capitalization of $3.00 trillion at market close.
The remarkable ascent of Nvidia's stock value coincides with its impending stock split, set at a ratio of 10-for-one, slated to take effect on June 7. This strategic move aims to enhance the company's appeal to individual investors.
This milestone underscores a significant transformation in Silicon Valley, once dominated by Apple since the advent of the iPhone in 2007. Meanwhile, Microsoft retains its status as the world's most valuable company, boasting a market capitalization of $3.14 trillion.
The soaring demand for Nvidia's advanced processors reflects the relentless pursuit of AI capabilities by tech giants such as Microsoft, Meta Platforms, and Alphabet. Nvidia's servers, equipped with cutting-edge chips, have become indispensable in the race to dominate AI technology.
Bolstered by its stellar revenue forecasts, Nvidia has witnessed a staggering 30% surge in its stock value since May 22. The optimism surrounding AI propelled chip stocks across the board, with the PHLX chip index surging by approximately 4%. Super Micro Computer, known for its AI-optimized servers featuring Nvidia chips, also saw a robust climb of nearly 5%.
Nvidia's CEO, Jensen Huang, garnered widespread attention during his recent visit to the Computex tech trade fair in Taipei, his birthplace. While Nvidia basks in the fervor surrounding AI on Wall Street, Apple faces challenges stemming from sluggish iPhone demand and intense competition in China.
Amidst the tech landscape's rapid evolution, some investors perceive Apple as lagging behind its counterparts in integrating AI features into its products and services, further accentuating Nvidia's ascendancy in the technology realm.
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