Nvidia Overtakes Apple With $3 Trillion Market Cap
Nvidia has become the second most valuable company in the world, surpassing Apple with a market capitalization of over $3 trillion. This milestone places Nvidia behind only Microsoft in terms of market value. The company's stock has surged more than 200% this year, driven by strong demand for its AI-optimized semiconductor chips, which dominate about 80% of the market for generative AI technology. Recent product launches, including the DGX GH200 supercomputer, and strategic partnerships with major tech companies like Microsoft and Google, have bolstered Nvidia's market position.
The company also announced a 10-for-1 stock split, effective after trading on June 7, with shares beginning to trade post-split on June 10. This move is expected to make Nvidia's stock more accessible to individual investors. Additionally, Nvidia reported a 262% year-on-year increase in revenue for the most recent quarter and raised its quarterly dividend payout by 150% to $0.10 per share. CEO Jensen Huang has emphasized the transformative potential of AI, predicting it will lead to a new industrial revolution and reshape global businesses. Meanwhile, Apple, which previously dominated the market since the iPhone's launch in 2007, has seen a modest 5% rise in its shares this year amidst weak demand for iPhones and increased competition in China.
