NVIDIA has become the second most valuable company in the world. On Wednesday evening, the chip giant’s market capitalization reached $3.01 trillion and surpassed Apple, which is worth $3 trillion.
NVIDIA currently dominates the artificial intelligence race, primarily due to H100 chipThe 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 this year, surpassing the value of Amazon and Alphabet (Google).
In May, NVIDIA reported a whopping $14 billion profit on all chips sold, after which its shares rose 24%. NVIDIA is now second only to Microsoft, which currently has a market capitalization of $3.15 trillion. NVIDIA’s stock is worth $1,224, but the company plans to split its shares on June 7.
Investors are confident that NVIDIA’s huge growth in sales to cloud companies will continue. Over the last quarter, its revenue from the data center business, which includes sales of graphics processors, increased by 427% year-on-year to $22.6 billion, approximately 86% of the company’s total sales.
Meanwhile, Apple shares have only risen by about 5% this year as the iPhone maker’s sales growth has stalled in recent months. In its latest quarterly earnings report, Apple said overall sales fell 4% and iPhone sales fell 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 valuable company in the United States, but earlier this year it was overtaken by Microsoft, which also benefited from investor demand for AI infrastructure.
NVIDIA’s 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, which is expected later this year, and has also officially a new architecture of Vera Rubin GPUs is announced.
Sources: CNBC, The Verge, Google Finance