Nvidia surpasses Apple as the second largest public company in the US valued at $3 trillion

The shares of the chip manufacturer Nvidia have surged to record levels, increasing the company’s valuation. The tech giant has become the world’s second most valuable company, surpassing Apple in the ranking, according to Reuters.

  • On June 5th, Nvidia shares increased by 5.2%, closing the day at approximately $1,224.40, which raised the company’s valuation to $3.012 trillion. The iPhone manufacturer is valued at $3.003 trillion after its shares increased by 0.8%.
  • Nvidia is preparing to split its shares ten-for-one starting June 7th, which could make it more attractive to individual investors.
  • Microsoft is first in the list of the most valuable companies with a market value of $3.15 trillion.

Why is this important

In 2024, Nvidia’s shares increased by 147%. The demand for its processors far exceeds the supply as Microsoft, Meta, and Google compete to enhance their AI capabilities and dominate the field. Thus, while tech giants are spending money on artificial intelligence, Nvidia profits from it.

Meanwhile, Apple is struggling with weak iPhone demand and fierce competition in China, the largest smartphone market. Some investors believe Apple lags behind other tech companies rushing to implement AI features in their products and services.

Therefore, all eyes are on WWDC24, where the iPhone developer is expected to unveil its AI strategy. The western media reports suggest that at the conference, the company will announce a deal with OpenAI to use its AI in its operating system, iOS 18.