Nvidia becomes the second most valuable company in the world after surpassing Apple

Nvidia reached a new milestone in its corporate history when its shares hit record highs, boosting the company's total valuation to $3 trillion. This impressive achievement allowed the artificial intelligence chip maker to surpass Apple, becoming the second most valuable company in the world.

At the close of trading on Wednesday, Nvidia shares rose 4.9% , reaching $1,221.51 per share. This resulted in a market capitalization of $3.004 trillion. By comparison, Apple closed with a valuation of $3 trillion, after a 0.7% rise in its shares.

Nvidia performance

So far in 2024, Nvidia stock has risen a remarkable 147%. Demand for its advanced processors has far exceeded supply, while technology giants such as Microsoft, Meta Platforms and Alphabet (which owns Google) compete to improve their artificial intelligence capabilities. Furthermore, since May 22, when Nvidia revealed its latest exceptional revenue forecast , its shares have risen nearly 30%.

The company also recently announced an upcoming 10-for-1 stock split, effective June 7. This measure aims to increase the attractiveness of Nvidia shares among individual investors, facilitating access to its titles.

A change in the panorama

Nvidia's rise underscores a significant shift in Silicon Valley's tech landscape. Apple, co-founded by Steve Jobs, has been dominant since the launch of the iPhone in 2007. However, Nvidia has taken the lead. Meanwhile, Microsoft maintains its position as the most valuable company in the world, with a market capitalization of $3.15 trillion and a 1.8% increase in its shares.

Challenges for Apple

While Nvidia enjoys outstanding performance and redefines the global technology landscape with its focus on artificial intelligence, Apple faces several challenges. These include weak demand for iPhones and intense competition in China, the world's largest smartphone market. Some investors also see Apple as lagging behind other tech giants that are rapidly incorporating AI features into their products and services.

However, the picture could change again soon, as Apple plans to launch an improved version of Siri, its virtual assistant, as part of its strategy to stay ahead in the Artificial Intelligence (AI) race and continue being relevant in the market. Apple may reportedly announce the revamp of Siri at its annual developers conference (WWDC) on June 10.