THIS firm hits $3 trillion in value, zooms past Apple as second-most valuable company

By Team Asianet Newsable | First Published Jun 6, 2024, 12:05 PM IST

Nvidia shares rose 5.2 percent to close at a record $1,224.40 on June 5, pushing its market value to more than $3 trillion and thus overtaking Apple Inc. in the process.

Nvidia Corporation, the world's most valuable semiconductor company, has now become the first computer-chip firm to hit a $3 trillion market capitalisation, as per a Bloomberg report. The firm is situated in Santa Clara, California, and its shares have increased by over 147% this year. This increase in value is attributed to the growing demand for the company's chips, which fuel artificial intelligence (AI) functions.

With a 5.2% increase in shares, the chip maker's market capitalization surpassed Apple Inc. and reached a record high of $1,224.40 on June 5 (US local time). The last time Nvidia's value exceeded Apple's was in 2002, five years before the first iPhone's release. Back then, both companies were valued at less than $10 billion each.

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Nvidia doesn't appear to be slowing down. Jensen Huang, the company's chief executive officer, said that the AI accelerators will be upgraded on a yearly basis. According to the Bloomberg Billionaires Index, Huang's fortune surged by almost $5 billion during the Wednesday stock market spike, totaling $107.4 billion.

As generative AI becomes more prevalent, Huang compared it to a new industrial revolution and predicted that Nvidia will become increasingly important when technology moves towards personal computers. During a keynote address at National Taiwan University, he highlighted the company's pivotal role in this transformation.

Nvidia has benefited immensely from a surge in AI spending, propelling the company into a race to become the world's most valuable company. Although it still trails Microsoft Corp. by market value, Wall Street analysts believe it is only a matter of time before Nvidia overtakes it.

Conversely, Apple has faced challenges this year, with its shares pressured by concerns over declining iPhone demand in China and a fine from the European Union. Despite this, Apple shares have recently turned positive for 2024 as investor sentiment slowly improves.

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