NVIDIA overtakes Apple to become the world’s second most valuable company with a capitalization of $3.01 trillion
NVIDIA became the second most valuable company in the world. On Wednesday evening, the chip giant’s market capitalization reached $3.01 trillion, surpassing Apple’s $3 trillion value.
Today, NVIDIA dominates the artificial intelligence race, primarily thanks to the H100 chip, and the company’s market capitalization continues to grow. Only a year ago, in May 2023, NVIDIA’s value reached $1 trillion, and then exceeded $2 trillion in February of this year, surpassing the value of Amazon and Alphabet (Google).
In May, NVIDIA reported a whopping $14 billion profit from all the chips it sold, sending its shares up 24%. Currently, NVIDIA is only behind Microsoft, which currently has a market capitalization of $3.15 trillion. NVIDIA shares are worth $1224, but the company plans to split the stock on June 7.
Investors are confident that NVIDIA’s huge growth in sales to cloud companies will continue. During the last quarter, its data center business, which includes GPU sales, grew 427% year-on-year to $22.6 billion, approximately 86% of the company’s total sales.
Meanwhile, Apple shares are up only about 5% this year as the iPhone maker’s sales growth has stalled in recent months. In its latest quarterly earnings report, Apple said that overall sales were down 4% and iPhone sales were down 10% compared to the same period last year. Apple is facing strategic questions and challenges regarding demand in China, production, and mixed reactions to its new Vision Pro virtual reality headset.
Apple was the first company to reach a market capitalization of $1 trillion and then $2 trillion. For a long time, it held the title of the most expensive company in the United States, but earlier this year it was overtaken by Microsoft, which also benefited from investor demand for AI infrastructure.
NVIDIA AI accelerators account for 70% to 95% of the market. The company plans to launch a new AI chip every year, starting with the Blackwell B200 GPU expected later this year, and a new Vera Rubin GPU architecture has already been officially announced.
