Nvidia is on track to overtake Apple to become the world’s second most valuable company by market capitalization as investors can’t get enough of buying shares in the semiconductor maker whose chips work for artificial intelligence tools such as ChatGPT, Reuters reports.
Nvidia’s phenomenal rise in shares amid the advance of artificial intelligence has boosted the company’s valuation from $1 trillion to more than $2 trillion in just nine months, surpassing Amazon.com, Alphabet, parent company Google, and Saudi Aramco.
Nvidia’s market capitalization currently stands at around $2.38 trillion, trailing Apple with around $230 billion and Microsoft with around $645 billion.
Nvidia’s market capitalization currently stands at around $2.38 trillion, trailing Apple with around $230 billion and Microsoft with around $645 billion.
The rise in Nvidia shares, which control 80% of the market for high-end AI chips, has helped push Wall Street to record levels this year while giving the company a weighting of more than 5% in the benchmark S&P 500 index.
Shares of Nvidia, which are up 95%, and Meta Platforms, which are up 46.6% this year, have also outperformed shares of other members of the so-called Magnificent 7 group, highlighting investor appetite for all things AI.
“The rise in Nvidia’s stock reflects the incredibly strong fundamentals underlying its current business model,” said Richard Meckler, a partner at Cherry Lane Investments, a New Jersey investment office.
Meanwhile, Apple, facing slowing iPhone sales, ceded its position as the most valuable US company to Microsoft in January for the first time since 2021.