NVIDIA Overtakes Apple as the second-most valuable company

Nvidia Corporation surpassed the $3 trillion valuation mark on Wednesday 5 June 2024, positioning itself as the second most valuable company in the U.S. market, overtaking tech giant Apple Inc. This remarkable milestone is driven by the soaring global demand for AI chips, a trend that shows no signs of slowing down. 

The chipmaker’s shares saw a climb of 5.16% on Wednesday ahead of the much-anticipated stock split scheduled for Friday. This surge is part of a larger trend, following a robust May 2024 Earnings Report, that propelled the stock by 28%. Nvidia’s performance is a clear indication of investor confidence and the company’s strategic positioning in the tech industry.

While Nvidia has made headlines by surpassing Apple, Microsoft Corporation still holds the top spot as the world’s most valuable with a market capitalisation of $3.15 trillion. 

Nvidia’s announcement of a 10-1 stock split for June 10 underscores the company’s intent to make its shares more accessible to a broader range of investors. This move reflects Nvidia’s confidence in its financial health and future prospects, aimed at enhancing shareholder value. By reducing the price per share, the stock split facilitates easier acquisition for individual investors, potentially expanding the shareholder base and increasing market liquidity. 

With the demand for Artificial Intelligence technology on the rise, Nvidia is poised to maintain its growth momentum, as shown by its stock soaring 2,800% in the last five years.