Nvidia, a chip manufacturer, has overtaken Apple, the market leader in technology, to take second place in terms of valuation globally, right behind Microsoft.
The AI boom caused Nvidia’s market capitalization to surpass $3 trillion for the first time.
In the most recent trading session, Nvidia’s shares increased by 5.16 percent, bringing the company’s market capitalization to $3.01 trillion. With a market valuation of $3 trillion, Apple has seen a 0.78 percent increase in its share price.
Due to the growing demand for Artificial Intelligence (AI) chips, Nvidia’s stock price is still rising. The company’s stock price increased by over 200 percent in the past year.
In the last five, Nvidia stocks generated more than 3,224 per cent return to investors. The company will split its stock 10 for 1 later this month.
Software giant Microsoft is the world’s largest company with a market cap of $3.15 trillion.
This is not the first time that Nvidia’s market cap is more than Apple’s. This had happened before in 2002 also. At that time the valuation of both companies was less than $10 billion.
The reason behind the rise in Nvidia’s stock is the increase in the use of AI. Due to this, the demand for chips made by the company has increased all over the world.
The company recently decided to design a new AI chip every year.
The company’s CEO Jensen Huang has described Generative AI as a new industrial revolution. He had said that Nvidia would play a big role in this transformation.
Apple has had to face many challenges since the start of 2024. iPhone sales are declining in China while demands from the European Union remain stable.