Nvidia (NVDA.O) surged to record highs on Wednesday, with the AI chipmaker’s valuation breaching the $3 trillion mark, overtaking Apple (AAPL.O) to become the world’s second most valuable company. Nvidia’s stock climbed 5.2% to close at $1,224.40, valuing the company at $3.012 trillion. In contrast, Apple’s market capitalization was $3.003 trillion after a 0.8% rise in its stock. This significant milestone represents a shift in Silicon Valley’s landscape, traditionally dominated by Apple since the launch of the iPhone in 2007.
Nvidia’s ascent is driven by its critical role in AI technology, with its top-tier processors in high demand as tech giants like Microsoft, Meta Platforms (META.O), and Alphabet (GOOGL.O) expand their AI capabilities. The company’s stock has soared 147% in 2024, outpacing supply amid a race to lead in AI computing. Nvidia is set to split its stock ten-for-one on June 7, potentially increasing its appeal to individual investors. While Microsoft (MSFT.O) remains the most valuable company at $3.15 trillion, Nvidia’s current trajectory suggests it may soon challenge this position, fueled by robust retail investment and strong AI-related revenue.