Nvidia is now more valuable than Apple at $3.01 trillion
Nvidia surpasses Apple with a $3.01 trillion market cap, fueled by AI chip advancements.
Nvidia has achieved a monumental milestone by surpassing Apple in market capitalization, reaching a value of $3.01 trillion. This significant increase in value marks Nvidia as the second most valuable company globally, only behind Microsoft which boasts a market cap of $3.15 trillion. The surge in Nvidia's value is largely attributed to the success of its AI chips, particularly the flagship H100 chip, which has been crucial in advancing the AI sector. Nvidia's rapid ascent in market valuation began in May 2023 when it became a trillion-dollar company and continued its steep climb, surpassing the $2 trillion mark by February 2024, thereby eclipsing other tech giants such as Amazon and Alphabet in valuation.
The company's financial success is underpinned by its substantial profits, with a reported $14 billion in profit recently due to robust chip sales. Nvidia's dominance in the AI chip market is significant, holding between 70 to 95 percent of the market share. This dominance is further reinforced by strategic plans to release new AI chips annually, starting with the forthcoming Blackwell B200 GPU expected later this year. Additionally, in a move to make its shares more accessible to investors, Nvidia has announced a stock split scheduled for June 7th, which is anticipated to further bolster its market position. The company's strategy emphasizes not only expanding its technological capabilities but also enhancing shareholder value through financial maneuvers.