In an impressive rise, chipmaker Nvidia has surpassed Apple to become the second most valuable company on Wall Street. This milestone marks a new all-time high for Nvidia, whose capitalization has reached $3 trillion in just 66 days, a significant increase from $2 trillion.
Nvidia’s stock value increased by 5.16%, reaching $1,224 per share and surpassing Apple in market value. With 147% growth so far this year, Nvidia now has a capitalization of $3.012 trillion, surpassing Apple’s $3.003 trillion, which has seen a modest 1.73% increase since January.
Microsoft continues to lead the way as the most valuable company on Wall Street, with a capitalization of $3.151 trillion and growth of 12.76% in 2024.
Nvidia is the undisputed leader in the artificial intelligence processor market, thanks to its powerful GPU chips that are essential for AI applications such as machine learning, computer vision and natural language processing.
Nvidia’s meteoric rise has been driven largely by its dominance in the artificial intelligence processor market and its pioneering vision of the potential of graphics processing chips. Nvidia’s latest financial results, which showed a 628% increase in profits thanks to growing demand for chips and improvements in profitability margins, have reinforced investor confidence in the company’s future.
Rising demand for AI in various sectors, from healthcare and finance to transportation and manufacturing, is driving strong demand for Nvidia’s products.
Meanwhile, Apple faces challenges in 2024, with declining sales and increased competition in key markets like China. The unknowns about the success of its virtual reality glasses, the Vision Pro, also add pressure on the company.
According to analysts, Nvidia shares appear to have reached their target price, with 90.3% of firms recommending buying shares. In contrast, Apple still has 4.6% upside potential, with opinions divided among analysts on the company’s future direction.
