- By Aditya Pratap Singh
- Thu, 06 Jun 2024 10:52 AM (IST)
- Source:JND
Nvidia, a worldwide leader in chip production, has surpassed Apple to become the world's second most valuable company. Nvidia shares climbed over 5% to close at $1,224.40 on Wednesday, pushing the company's valuation to $3.012 trillion. Meanwhile, Apple's valuation is at $3.003 trillion, as its shares rose 0.8% on Wednesday.
This year, shares of Nvidia, a California-based firm, have climbed nearly 147%, and the rise in demand for chips that power AI is the reason for this. As a result, its market capitalization has increased by about $1.8 trillion. Nvidia shares surged by 5.2 percent on June 5 to close at a record $1,224.40, following the rise in share price, the market value of Nvidia crossed over $3 trillion, surpassing Apple. According to the Bloomberg Billionaires Index, Huang's wealth increased by more than $5 billion owing to the stock market boom on Wednesday, bringing his net worth to $107.4 billion.
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Huang characterized the rise of generative AI as a new industrial revolution. He also hoped that Nvidia would play an important role in shifting generative AI technology to personal computers. He spoke about the company's important role in this transformation during his keynote address at National Taiwan University.
World's 5 Most Valuable Firms
- Microsoft $3.151 trillion
- Nvidia $3.011 trillion
- Apple $3.003 trillion
- Alphabet (Google) $2.179 trillion
- Amazon $1.886 trillion
After Microsoft Nvidia's profit is driven by its investment in AI and this has positioned the company on the path to becoming the world's most valuable corporation. Although it still lags behind Microsoft ($3.15 trillion) in market capitalization, Wall Street analysts believe it is only a matter of time until Nvidia overtakes Microsoft well.
On the other hand, Apple has faced difficulties this year. Its shares have been under pressure due to a drop in iPhone demand in China and worries about fines from the European Union. Despite this, Apple shares have recently turned positive for 2024 due to a gradual improvement in investor sentiment.