Nvidia surpasses Apple to claim second spot as world’s most valuable company in the technology sector

Nvidia, a chipmaker, has surpassed Apple to become the world’s second-most valuable company, with its market capitalization reaching over $3 trillion due to strong demand for its shares. The company’s stock price increased by 5.2 percent on Wednesday, closing at $1,224.40. This surge in valuation reflects the growing interest in Nvidia’s graphics processing units, especially in the field of artificial intelligence (AI).

Meanwhile, Microsoft, the most valuable company in the world, also experienced a rise in its stock price by 1.91 percent, while Apple’s gain was modest at 0.78 percent. Nvidia’s impressive rally continues a trend of significant gains for the company, as its revenues have seen a staggering 260 percent rise over the past year. Major tech companies like Microsoft, Meta, Google, and Amazon are driving this growth through the adoption of AI technology.

With Nvidia’s stock doubling in value this year and tripling in 2023, the company announced a 10-for-1 stock split to increase accessibility for both employees and investors. This move, effective on Friday, is expected to further enhance the company’s appeal to potential investors.

In contrast, Apple, the first company to reach market capitalization milestones of $1 trillion and $2 trillion, is facing challenges such as sluggish demand for its iPhones in China and perceptions of lagging behind in AI adoption. While Apple’s stock price has only seen a 5 percent increase this year, it falls short compared to the broader market indices like the S&P 500 and Nasdaq.