Nvidia is rapidly closing in on Apple’s position to become the world’s second-most-valuable company, fueled by investors’ strong interest in the semiconductor manufacturer, whose chips are integral to popular artificial intelligence tools like ChatGPT.
An astonishing surge in Nvidia’s shares, driven by AI-related advancements, has propelled the company’s valuation from $1 trillion to over $2 trillion in just nine months, surpassing Amazon.com, Google-parent Alphabet, and Saudi Aramco along the way.
With a market capitalization hovering around $2.38 trillion, Nvidia trails Apple by approximately $230 billion and Microsoft by about $645 billion.
The relentless climb in Nvidia’s shares, controlling 80% of the high-end AI chip market, has significantly contributed to Wall Street reaching record levels this year, granting the company over a 5% weightage on the S&P 500 index.
Nvidia, up by 95%, and Meta Platforms, up by 46.6% year-to-date, have notably outperformed other members of the so-called Magnificent 7, indicating investors’ voracious appetite for AI-related assets.
In contrast, Apple, facing sluggish iPhone sales, relinquished its top spot as the most valuable U.S. company to Microsoft in January.
Recently, Nvidia has overtaken Tesla as the most traded stock by value on Wall Street.
