NVIDIA Short time passing apple In intraday trading on Wednesday, the market capitalization The chipmaker has emerged as one of the biggest beneficiaries of the artificial intelligence boom and, if it holds up to the closing bell, will become the second-most valuable company in the United States.
Nvidia also surpassed the $3 trillion market cap milestone on Wednesday. Nvidia’s market cap briefly reached $3.007 trillion, while Apple’s was at $3.005 trillion.
Nvidia shares are up more than 24% since the company reported first-quarter results in May, continuing a sharp rise since last year. The company has an estimated 80% market share for AI chips used in data centers, where big tech companies are investing billions of dollars.
Investors are taking comfort that Nvidia’s strong sales growth to a small number of cloud companies will continue. In the most recent quarter, revenue from its data center business, which includes GPU sales, grew 427% over the year to $22.6 billion, accounting for about 86% of the company’s total revenue.
Meanwhile, Apple’s stock price is up just 5% this year and sales growth has stalled in recent months. In its most recent quarterly earnings report, Apple said its overall sales were down 4% year over year, and iPhone sales were down 10%. Apple is facing strategic questions and problems, including demand in China, manufacturing, and mixed reactions to its new virtual reality headset, the Vision Pro.
Apple is the first company to reach a market capitalization of $1 trillion and $2 trillion. For the past few years, it has been the most valuable company in the United States, but it is once again Passed Microsoft Earlier this year, Microsoft, along with Nvidia, benefited from investor demand for AI.
Nvidia’s stock price has been more volatile than Apple’s. The company was founded in 1991 primarily as a gaming company, selling hardware for playing 3D computer games, but more recently has been selling cryptocurrency mining chips and cloud subscription services.
Nvidia’s stock price has soared as its AI business has grown, up more than 3,290% over the past five years. The company announced a 10-for-1 stock split in May.