Magazine : 
Nvidia Surpasses Apple to Become World's Second Most Valuable Company
In a remarkable milestone, AI chipmaker Nvidia has overtaken technology giant Apple to become the world's second most valuable company, trailing only behind Microsoft. Nvidia's market capitalization soared past $3 trillion for the first time, fueled by the booming demand for Artificial Intelligence (AI) chips.
In the most recent trading session, Nvidia's shares surged by 5.16%, propelling the company's market cap to $3.01 trillion. In comparison, Apple's shares saw a modest increase of 0.78%, bringing its market cap to $3 trillion. The significant rise in Nvidia's stock price, which has surged more than 200% over the past year, underscores the escalating demand for AI technology.
Over the past five years, Nvidia's stock has delivered an extraordinary return of over 3,224% to investors. The company is set to further entice investors with a 10-for-1 stock split later this month. Meanwhile, Microsoft remains the world's largest company with a market cap of $3.15 trillion.
This is not the first time Nvidia's market cap has surpassed Apple's. The same occurred in 2002 when both companies had valuations of less than $10 billion. The current surge in Nvidia's stock is attributed to the increased global demand for AI chips, driven by the widespread adoption of AI technologies.
Nvidia has committed to designing a new AI chip every year, highlighting its dedication to leading the AI revolution. CEO Jensen Huang has described Generative AI as a new industrial revolution, emphasizing Nvidia's pivotal role in this transformation.
In contrast, Apple has faced several challenges since the beginning of 2024. iPhone sales have declined in China, though demand in the European Union has remained stable. Despite these hurdles, Apple continues to be a major player in the technology sector, even as Nvidia's rise underscores the growing importance of AI in the global market.
