Nvidia Tops Apple’s Market Cap, Becoming The World’s 2nd Most Valuable Company

Topline

Chip designer Nvidia surpassed Apple’s market capitalization Wednesday for the first time ever, becoming the 2nd most valuable company in the world after a year of white-hot stock gains charged by an artificial intelligence craze.

Key Facts

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Big Number

80%. That is the estimated share of semiconductor chips used to power generative AI technology that are designed by Nvidia, according to Goldman Sachs research.

Key Background

Nvidia’s stock has more than doubled in price this year, trading up more than 147% since the start of January, when it traded around $481 per share. The chip maker’s success in the semiconductor market has been boiled down to its unique, fast-produced chips capable of powering artificial intelligence products. It has several big-name customers including Apple, Meta and Microsoft, the latter of which is estimated to account for 15% of Nvidia’s revenue. Nvidia’s lion’s share of AI-powering chips also gives it significant future earnings potential. The company’s stock will split 10-for-1 after market close on Friday, making its pricey stock far more accessible for investors.

Further Reading

S&P 500 Hits Record High After Apple And Nvidia Join $3 Trillion Market Cap Club (Forbes)

Apple Stock Hits $3 Trillion Valuation As AI iPhone Hype Builds (Forbes)

Nvidia Stock Hits New All-Time High Ahead Of 10-For-1 Split (Forbes)