Nvidia saw a 5% surge on Wednesday, making it the second-most-valuable company globally, surpassing Apple.
Nvidia’s Market Valuation
The stock closed at $1,224.40 per share, leading to a market valuation of $3.014 trillion.
AI Boom Fuels Nvidia’s Growth
The ongoing boom in artificial intelligence has propelled Nvidia’s market valuation into the $3 trillion club. Mega-cap tech companies like Meta Platforms, Alphabet, Amazon, and Microsoft are racing to purchase Nvidia’s supply-constrained AI-enabling GPU chips.
Rapid Valuation Increase
Nvidia’s valuation was just over $950 billion a year ago and around $400 billion in November 2022, when OpenAI first released ChatGPT to the public.
Apple’s Stagnation
Apple stock, despite trading near record highs, has stagnated over the past year as investors await its AI strategy. Apple stock is up 2% year-to-date, compared to Nvidia’s 146% gain.
Market Valuations Compared
On Wednesday afternoon, Apple held a market valuation of $3.00 trillion, approximately $15 billion less than Nvidia’s current valuation.
Nvidia’s Position in the Market
With Apple surpassed, Nvidia now ranks behind only Microsoft, the world’s most valuable company, with a market capitalization of $3.15 trillion.
Nvidia’s Role in the AI Boom
The AI boom has driven much of the stock market’s rise, making it unsurprising that the company most responsible for powering this boom has become one of the world’s most valuable.
Future Projections for Nvidia
Tech analyst Beth Kindig of I/O Fund believes Nvidia’s gains could continue. In a recent interview, she suggested the company could be worth $10 trillion by 2030.
“Similar to how iOS locked people into the iPhone because developers were creating applications for it, the same is happening with Nvidia. The CUDA platform is what AI engineers are learning to program GPUs, creating an impenetrable moat,” Kindig stated last month.
