Nvidia Breakthrough $3 Trillion Market Cap: Overtakes Apple as World's Second Most Valuable Company Nvidia has surpassed Apple to become the most valuable company in the world with a valuation of $3.012 trillion as of today.
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The AI chip and integrated software giant, Nvidia's, stock price surpassed the previous milestone set by Apple as the second most valuable company at $3 trillion this Wednesday. The company is also reportedly setting up for a ten-for-one stock split, to take effect on June 7. The company will also raise its dividend from $0.04 per share to $0.10 per share.
Amazon, Google, Meta, Microsoft, Tesla and other tech mammoths harness Nvidia's tech to propel their own AI services and much more. The most recent quarter saw a 427 per cent year over year (YoY) growth in Nvidia's data center revenue to $22.6 billion, according to figures from Yahoo Finance. This represented 86 per cent of the business's quarterly revenue. The gaming division of the company, which was formerly its most significant business, generated $2.6 billion in sales.
Jake Dollarhide, chief executive officer at Longbow Asset Management talking to Reuters said, "Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI. 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."
Microsoft still retains the title as the world's most valuable company, crowning at $3.15 trillion after its shares climbed 1.9 per cent. As per a Reuters report, Apple is having trouble with a lackluster demand for iPhones and fierce competition in China, the largest smartphone market in the world, while Nvidia is riding high on the wave of AI euphoria on Wall Street. While rival tech giants are rushing to incorporate AI technologies into their goods and services, some investors believe Apple is falling behind.
Forecasts for Nvidia's earnings in the future have exceeded the company's impressive stock growth. Based on that metric, Nvidia is less costly now, trading at 39 times expected earnings, than it was a year ago, when it was selling at almost 70 times projected profits, according to LSEG data.
