Nvidia’s value reaches $3 trillion, overtaking Apple

Image source, Getty Images

  • Author, Natalie Sherman
  • Role, Business reporter, BBC News
  • Reporting from New York

Nvidia’s market value has soared past $3 trillion (£2.3 trillion), helping the chipmaker overtake Apple to become the world’s second most valuable listed company.

The company’s stock price rose more than 5% to more than $1,224 on Wednesday.

It extended a breathtakingly rapid climb that began last year, powered by bets that the company is positioned to be a big winner from a wave of artificial intelligence (AI) investment.

Its market value is now just behind that of Microsoft, another major player in the sector thanks to its investments in Chat GPT maker OpenAI.

Nvidia was valued at “just” $2 trillion in February and sparked a new wave of stock buying after it announced plans for a so-called stock split last month.

The move will increase the number of shares by a factor of 10 and reduce their value accordingly, a change aimed at making shares more affordable for retail investors.

This will happen on Friday and is expected to generate even more demand for the stock.

Founded in 1993, Nvidia was originally known for making the type of computer chips that process graphics, particularly for computer games.

Long before the AI ​​revolution, the company began adding features to its chips that it says will help machine learning — all of which has helped it grow its market share.

It is now seen as a key company to watch as quickly AI-powered technology spreads across the business world, foreman Jensen Huang has hailed as marking the dawn of the “next industrial revolution”.

His company has experienced explosive growth, reporting revenues of $26 billion in the three months to April 28 – more than triple the same period in 2023, and up 18% on the previous three months.

Optimism about AI is one of the forces behind a broader market rally over the past year, which pushed the S&P 500 and the Nasdaq in the United States to new records on Wednesday.

Apple appeared to be making a loss earlier this year when sales growth stalled.

But in recent weeks the stock has been buoyed by expectations that it plans to integrate AI into its own strategy.

The company’s shares rose 0.7%, giving it a market capitalization of roughly $3 trillion, which is typically calculated by multiplying the number of shares in a company by its current stock price.