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06/06/24
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Nvidia Passes Apple as Second Most Valuable Company
On Wednesday, Nvidia rallied to record highs as the artificial intelligence chipmaker’s valuation breached the $3T level and overtook Apple to become the second most valuable company in the world.
Nvidia is getting ready to split its stock 10-for-1 from June 7, a move that may increase its attraction to individual investors.
The surge in the market value of Nvidia to higher than Apple’s causes a change in Silicon Valley, which Apple has dominated since it in 2007 launched the iPhone.
Nvidia’s stock gained 5.2% to close the day at $1,224.40, valuing the company at $3.012T. Apple’s market cap was at about $3.003T after its stock rose 0.8%.
Microsoft is still the most valuable company in the world at $3.15T after its shares rose 1.9%.
Longbow Asset Management’s CEO, Jake Dollarhide, said Nvidia is currently making money on AI while companies such as Meta and Apple are spending on AI.
He added Nvidia will likely overtake Microsoft as well as there was a lot of retail money that was piling in on what they believe is as a sure bet.
Nvidia’s stock surged 147% so far this year and demand for its top-of-the-line processors outstrips supply as Alphabet, Meta Platforms and Microsoft expand their AI computing capabilities.
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