Nvidia's market value crossed the $3 trillion mark on Wednesday's market close. The chip maker has now surpassed Apple to become the world's second most valuable publicly traded company.
The company's stock price surged by over 5 per cent on Wednesday, reaching more than $1,224 price level. This comes at a time when investors, globally, are heavily investing in AI as people continue to make bets on the new tech. Gen AI has become the new hype and every company is looking to capitalize on it.
Nvidia's market value was $3.019 trillion at market close, clearly surpassing Apple's $2.99 trillion. Meanwhile, Microsoft continues to hold the top spot with a market cap of $3.15 trillion as of Wednesday. The shares of the chipmaker have climbed over 30 per cent since the last month on NASDAQ. With an estimated 80 per cent market share in AI chips for data centers, Nvidia is drawing massive investment from major cloud providers, as per a report by CNBC.
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On the other hand, Apple's shares have increased by only 5 per cent this year. This was largely because of the slowdown in sales growth, particularly evident in the recent quarterly earnings report. The iPhone maker witnessed a decline of 4 per cent in sales. Overall iPhone sales dropped by 10 per cent compared to the previous year. The tech giant is reportedly facing challenges owing to subdued demand in China, manufacturing issues, and mixed reactions to its latest product, Vision Pro.
Apple was the first company to achieve a market cap of $1 trillion and $2 trillion, and it held the title of the most valuable U.S. company until Microsoft surpassed it earlier this year.
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On yearly basis, Nvidia has delivered a massive 216 per cent return on its share price on NASDAQ.
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