#Nvidia #MarketCapitalization #ArtificialIntelligence
Nvidia Surpasses Apple in Market Capitalization, Becomes Second Most Valuable Public U.S. Company
Today, I witnessed a significant milestone in the tech industry as Nvidia surpassed Apple in market capitalization, becoming the second most valuable public U.S. company. This achievement marks a remarkable surge in Nvidia's stock, which has risen over 24% since its first-quarter earnings report in May. The company's market value now stands at $3.007 trillion, surpassing Apple's $3.005 trillion.
Nvidia's dominance in the artificial intelligence (AI) sector, particularly in the AI chip market for data centers, has been a significant factor in its growth. The company holds an estimated 80% market share in this sector, where tech giants invest heavily. Investors have grown increasingly confident in Nvidia's ability to maintain its impressive sales growth, particularly among a select group of cloud companies.
In contrast, Apple has faced challenges in recent months, with overall sales declining by 4% and iPhone sales dropping by 10% compared to the previous year. Apple, which was the first company to reach $1 trillion and $2 trillion market caps, has been surpassed by Microsoft earlier this year. Microsoft has also benefited from investor demand for AI, similar to Nvidia.
Nvidia, founded in 1991, initially focused on gaming hardware but has since expanded its offerings to include cryptocurrency mining chips and cloud subscription services. Its stock has experienced dramatic growth, with shares rising over 3,290% in the past five years. In May, the company announced a 10-1 stock split.
Perspective
The comments section is filled with excitement and optimism about Nvidia's achievement. Many investors are praising the company's strategic expansion into AI and its ability to capitalize on the growing demand for AI technology. Some are also discussing the challenges Apple faces, particularly in China, and how this has contributed to its decline in market capitalization.
Data
- Nvidia's data center business, which includes GPU sales, saw a staggering 427% year-over-year increase in sales, reaching $22.6 billion in the most recent quarter, accounting for approximately 86% of the company's total revenue.
- Nvidia's market share in the AI chip market for data centers is estimated to be around 80%.
- Nvidia's stock has risen over 3,290% in the past five years, making it one of the most successful tech stocks in recent history.
Original Article: https://www.cnbc.com/2024/06/05/nvidia-passes-apple-in-market-cap.html
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