Shares of Nvidia rallied to record highs on Wednesday, with the artificial intelligence chipmaker’s stock market valuation hitting the $3tn mark and overtaking Apple to become the world’s second most valuable company.
The chipmaker’s stock was up 5.16% at $1,224.40, giving Nvidia a market value of $3.01tn at market close. Apple’s market capitalization was at $3.00tn at market close as its stock climbed 0.78%.
The latest rally in Nvidia comes as it prepares to split its stock ten-for-one, effective on 7 June, a move that could increase its appeal to individual investors.
The surge in Nvidia’s stock market value above Apple’s underscores a shift in Silicon Valley, where the company co-founded by Steve Jobs has dominated since it launched the iPhone in 2007.
Microsoft, based in Redmond, Washington, remains the world’s most valuable company with a market value of $3.14tn as its shares climbed slightly the same day, the only other company to reach such a stratospheric valuation.
Nvidia’s stock has surged 147% so far in 2024, with demand for its top-of-the-line processors far outstripping supply as Microsoft, Meta Platforms and Google-parent Alphabet race to build out their AI computing capabilities and dominate the emerging technology.
Nvidia has rallied nearly 30% just since 22 May, when it issued its latest stellar revenue forecast.
Optimism about AI lifted chip stocks broadly on Wednesday, with the PHLX chip index surging about 4%. Super Micro Computer, which sells AI optimized servers built with Nvidia chips, climbed nearly 5%.
Nvidia CEO Jensen Huang this week was the subject of wall-to-wall coverage on Taiwanese television and was mobbed by attendees when he visited the Computex tech trade fair in Taipei, where he was born before moving to the United States.
While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple is struggling with weak demand for iPhones and tough competition in China, the world’s biggest smartphone market.
Some investors also view Apple as lagging other technology heavyweights as they rush to build AI features into their products and services.
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