Chipmaker giant Nvidia on Friday officially became the world's second most valuable company, after Microsoft, leaving behind Apple.
This is a stupendous feat achieved by Nvidia, crossing over a market cap of $3 trillion, largely sustained by exponential growth in the artificial intelligence domain.
Shares of Nvidia increased by 5.16% in the latest trading session, bringing its market capitalization to an impressive $3.01 trillion. Meanwhile, Apple shares managed a gain of $0.78% over the same period, keeping the company market capitalization at $3 trillion.
AI chips have driven the rise of Nvidia in the stock market, as the demand for the same rises at an exponential rate. Over the last year alone, its stock prices have gone up by more than 200%.
The gains made by Nvidia stock for its investors are over 3,224% in the last five years. Expecting more gains, the company has decided to split the stock into a ratio of 10:1 later this month.
If Nvidia's climb is impressive, remember that software giant Microsoft remains the world's most valuable company, with a market capitalization of $3.15 trillion.
Interestingly, this is not the first time the chipmaker Nvidia has kicked tech giant Apple out of the race in the market cap: the first time happened back in 2002, when both companies were valued at below $10 billion.
The most recent growth that Nvidia has witnessed in its shares is directly related to the ever-growing use of AI technology across the globe, which has driven increased demand for its chips across all sectors.
Now in need of meeting this demand, Nvidia is committed to releasing an annual release of a new AI chip, which is the commitment of radical innovation that has to be welcomed by any technology enthusiast. Jensen Huang, CEO of Nvidia, referred to the phenomenon of Generative AI as the new industrial revolution, in which his company played a leading role.
For Apple, they have to deal with declining iPhone sales in China but stable demand in the EU, thus giving it a mixed scenario for the tech giant in 2024.
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