Nvidia Surpasses Apple to Become the Second-Largest Public Company in the US
June 06, 2024
Nvidia Surpasses Apple to Become the Second-Largest Public Company in the US

Nvidia, the trailblazing AI chipmaker, is on a remarkable ascent, capturing the attention of investors and tech enthusiasts alike. The company’s market capitalization recently surged to an impressive $3.019 trillion, nudging past Apple’s $2.99 trillion and positioning Nvidia as the second-largest publicly traded company in the United States, just behind Microsoft’s $3.15 trillion.

The Meteoric Rise of Nvidia

Nvidia’s journey to the top has been nothing short of extraordinary. This Santa Clara-based chipmaker has become synonymous with cutting-edge artificial intelligence technology, fueling its rapid growth and investor confidence. On Wednesday, Nvidia’s shares jumped by 5.2%, reaching approximately $1,224.4 per share, while Apple’s shares saw a modest increase of 0.8%, closing at $196. This surge not only propelled Nvidia past Apple but also set new records for the S&P 500 and Nasdaq indexes.

The AI Revolution and Nvidia's Dominance

So, what’s driving Nvidia’s phenomenal success? The answer lies in the company’s strategic focus on artificial intelligence. Nvidia has been a significant beneficiary of the AI boom, with its stock skyrocketing by 147% this year alone, following an astounding 239% increase in 2023. This AI craze has captivated Wall Street, and Nvidia stands at the forefront of this technological revolution.

Upcoming Innovations: The Rubin AI Chip Platform

Nvidia’s CEO, Jensen Huang, recently announced plans to unveil the company’s most advanced AI chip platform, Rubin, in 2026. This new platform will follow the highly successful Blackwell chips, which have already been dubbed the “world’s most powerful chip.” The introduction of Rubin signifies Nvidia’s ongoing commitment to pushing the boundaries of AI technology and maintaining its market leadership.

Market Impact and Future Prospects

Nvidia’s influence extends far beyond its market cap. The company accounts for approximately 70% of AI semiconductor sales, and analysts believe there’s still room for growth. Angelo Zino, a senior equity analyst at CFRA Research, noted, “As we look ahead, we think NVDA is on pace to become the most valuable company, given the plethora of ways it can monetize AI and our belief that it has the largest addressable market expansion opportunity across the Tech sector.”

Making Shares More Accessible: 10-for-1 Stock Split

To make investing in Nvidia more accessible, the company announced a 10-for-1 stock split last month. This move will lower the price per share, making it easier for individual investors to buy into the high-flying semiconductor company. The split shares will start trading on June 10, offering more opportunities for people to become part of Nvidia’s exciting journey.

Conclusion: A Bright Future Ahead

Nvidia’s ascent to becoming the second-largest public company in the US is a testament to its innovative spirit and strategic focus on artificial intelligence. With the upcoming Rubin AI chip platform and a significant market share in AI semiconductors, Nvidia is well-positioned to continue its upward trajectory. As investors and tech enthusiasts watch closely, one thing is clear: Nvidia’s future looks incredibly promising.