- Last trading at $1,128, Nvidia’s market capitalization reached $2.8 trillion, compared to a market value of $2.9 trillion for Apple, which is Wall Street’s second-most valuable company after Microsoft.
In a significant shift of Wall Street’s main players, Nvidia’s shares surged around 6% to reach a record high on Tuesday, putting the AI chipmaker’s stock market worth only $100 billion shy of surpassing Apple.
With its most recent trade of $1,128.00, Nvidia’s market capitalization was $2.8 trillion, while Apple, the second-most valuable business on Wall Street after Microsoft, had a market value of $2.9 trillion.
During the day, the stock rose 8% to $1,149.39, a record intraday high. A 0.2% decrease in Apple’s stock was seen in afternoon trade.
Since Nvidia announced a stock split and predicted second-quarter sales beyond Wall Street projections last week, investors have been betting big on the AI poster child, and as a result, the company’s shares have jumped by almost 13%.
The market has been finding it difficult to match the company’s consistently positive growth trajectory. This still doesn’t feel like bubble territory at a mid-thirties forward earnings multiple, according to Derren Nathan, head of stock analysis at Hargreaves Lansdown.
When asked about the stock’s surge, Dan Coatsworth, investment analyst at AJ Bell, stated, “When the song is that catchy, investors want to keep humming it all day long. Business is doing incredibly well, and there are so many opportunities to keep growing.”
Long seen as a Wall Street must-own, Apple has lagged behind other large technology firms in recent months. This year, the company has lost around 2% of its value as a result of sluggish iPhone demand and fierce competition in China.
Earlier this year, Microsoft surpassed Apple to become the most valuable corporation in the world. The company’s early investments in artificial intelligence throughout its cloud services allowed it to outpace other digital companies.
Tuesday’s 0.4% decline in Microsoft’s stock valued the company at $3.1 trillion.
Comparatively speaking, Apple has lagged behind rivals like Microsoft and Google in integrating generative AI—which produces replies to textual cues that resemble those of a human—into its products.
