Nvidia officially passed Apple as the world’s second-most valuable company at the close of Wednesday’s market. The artificial intelligence boom in the last year helped the chipmaker claim the second spot. It now sits behind only Microsoft.
The company’s market cap climbed over the $3 trillion mark for the first time, which put it over the iPhone manufacturer. At Wednesday’s stock market close, Nvidia stood at $3.019 trillion while Apple was at $2.99 trillion. Microsoft stood above both at $3.15 trillion.
Nvidia is the current belle of the corporate ball. They brought in $14.9 billion net income last quarter on a revenue of $26 billion. Since their first quarter earnings report in May, their stock shot up a staggering 24%.
How Exactly NVIDIA Is Pulling This Off
Compare this to 2022, when Nvidia’s net income sat at $0.7 billion in the last quarter. Since their renewed and intense focus into chips to help train AI models, the company’s shares have experienced a meteoric rise – 3,290% over the last five years.
“As we look ahead, we think Nvidia 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,” CFRA analyst Angelo Zino said.
This marks the second time Apple was passed in 2024. Microsoft also surpassed them earlier this year – partially in thanks to their focus on AI – and still sits at the top with the title “world’s most valuable company.”
The Competition is Coming for Nvidia