Shares of AI chipmaker Nvidia soared to an all-time high on Wednesday, giving the company a market capitalization that hit the $3 trillion mark, overtaking Apple to become the world’s second-largest company.
Nvidia’s recent rise comes as the company prepares to implement a 1-for-10 stock split on June 7, a move that could make the company more attractive to retail investors.
Nvidia’s share price surpassing Apple’s underscores the shift in the landscape that has seen the company co-founded by Steve Jobs dominate Silicon Valley since it launched the iPhone in 2007.
Microsoft’s shares rose 1.9%, ensuring it remained the world’s most valuable company with a market capitalization of $3.15 trillion.
Nvidia shares have risen 147% so far in 2024, with demand for the company’s top-end processors far outstripping supply, as Microsoft Corp, Meta Platforms Inc and Google-parent Alphabet Inc race to build out AI computing capabilities and dominate emerging technologies.
Nvidia’s shares have risen nearly 30% since May 22, when the company issued its latest upbeat earnings forecast.
During Wednesday’s trading session, Nvidia shares briefly hit an intraday high of $1,224.50.
The chipmaker’s shares rose 5.9% to close at $1,224.40, giving Nvidia a market capitalization of $3.1 trillion.
Apple’s shares rose 0.8%, giving it a market capitalization of $3 trillion to close.
Nvidia CEO Jensen Huang was covered across Taiwanese television this week and surrounded by visitors during a visit to the Computex technology trade fair in Taipei, where he was born before moving to the United States.
While Nvidia is riding the wave of Wall Street’s AI craze, Apple is struggling with sluggish demand for the iPhone and stiff competition in China, the world’s largest smartphone market.
Some investors see Apple falling behind other tech giants in its rush to build AI capabilities into its products and services.
