On Tuesday (May 28), Nvidia’s stock price rose, reaching a record high and bringing the company’s market value closer to Apple, the current technology leader. Fueled by sturdy earnings and a brilliant future of artificial intelligence (AI), Nvidia shares jumped 6% to $1,128. This means the company’s market capitalization is $2.8 trillion, which is just $100 billion less than Apple’s value of $2.9 trillion. Microsoft currently holds the title of the most valuable company in the world, with a market value of $3.1 trillion. Apple takes second place.
The surge was not timid – Nvidia’s shares briefly hit $1,149.39 during trading, another record high. Meanwhile, Apple shares fell slightly.
What sparked the rally
This raise comes after Nvidia impressed investors with a positive second-quarter revenue forecast and the announcement of a stock split. Analysts believe investors are excited about the company’s potential in the booming artificial intelligence market.
“Nvidia’s growth is simply exceeding expectations,” said one analyst. “Even with the high valuation, it doesn’t look like a bubble.”
Nvidia’s success is driven by demand for its high-performance chips, especially in the data center segment, where revenue has increased fivefold. Tech giants like Alphabet, Microsoft and Amazon are competing for these chips to power their artificial intelligence initiatives.
“Nvidia’s business is booming,” another analyst said. “Artificial intelligence is a sizzling topic and investors are eager to be a part of it.”
Meanwhile, Apple, traditionally a dominant technology player, has seen its stock underperform this year. This is likely due to weaker iPhone sales and competition in China. Unlike Microsoft, which has embraced artificial intelligence through its cloud services, Apple has been slower to adopt the technology.
Will Nvidia beat Apple and take 3rd place?
With Nvidia’s impressive growth and Apple’s recent struggles, the technology landscape may be on the cusp of major change.
The surge was not timid – Nvidia’s shares briefly hit $1,149.39 during trading, another record high. Meanwhile, Apple shares fell slightly.
What sparked the rally
This raise comes after Nvidia impressed investors with a positive second-quarter revenue forecast and the announcement of a stock split. Analysts believe investors are excited about the company’s potential in the booming artificial intelligence market.
“Nvidia’s growth is simply exceeding expectations,” said one analyst. “Even with the high valuation, it doesn’t look like a bubble.”
Nvidia’s success is driven by demand for its high-performance chips, especially in the data center segment, where revenue has increased fivefold. Tech giants like Alphabet, Microsoft and Amazon are competing for these chips to power their artificial intelligence initiatives.
“Nvidia’s business is booming,” another analyst said. “Artificial intelligence is a sizzling topic and investors are eager to be a part of it.”
Meanwhile, Apple, traditionally a dominant technology player, has seen its stock underperform this year. This is likely due to weaker iPhone sales and competition in China. Unlike Microsoft, which has embraced artificial intelligence through its cloud services, Apple has been slower to adopt the technology.
Will Nvidia beat Apple and take 3rd place?
With Nvidia’s impressive growth and Apple’s recent struggles, the technology landscape may be on the cusp of major change.
