Nvidia overtakes Apple as No 2 most valuable company

Nvidia rallied to record highs yesterday with the artificial intelligence chipmaker’s valuation breaching the $3 trillion mark and overtaking Apple to become the world’s second most valuable company.

Nvidia is preparing to split its stock ten-for-one, effective on June 7, a move that could increase its appeal to individual investors.

The surge in Nvidia’s market value above Apple’s marks a shift in Silicon Valley, which the company co-founded by Steve Jobs has dominated since it launched the iPhone in 2007.

Nvidia’s stock rose 5.2% to end the day at $1,224.40, valuing the company at $3.012 trillion. Apple’s market capitalization was last at $3.003 trillion after its stock climbed 0.8%.

Microsoft MSFT.O, based in Redmond, Washington, remained the world’s most valuable company at $3.15 trillion afterits shares climbed 1.9%.

“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” said Jake Dollarhide, chief executive officer at Longbow Asset Management.

“It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There’s a lot of retail money that’s piling in on what they see as a straight shot up.”

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-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology.

It has rallied nearly 30% just since May 22, when Nvidia issued its latest stellar revenue forecast.

Nvidia added nearly $150 million in market capitalization on Wednesday, more than the entire value of AT&T.