Nvidia’s stock price surged on Tuesday, reaching a record high and inching closer to tech giant Apple’s market value. The company’s shares jumped 6%, hitting $1,128 and pushing its market capitalization to $2.8 trillion, just $100 billion behind Apple’s $2.9 trillion value. Microsoft currently holds the title of the world’s most valuable company at $3.1 trillion, with Apple following closely behind.
The rally was fueled by Nvidia’s positive second-quarter revenue forecast and a stock split announcement, which impressed investors. Analysts believe that the company’s potential in the AI market is driving this surge, with demand for its high-performance chips skyrocketing, especially in the data center segment where revenue has grown fivefold. Tech giants like Alphabet, Microsoft, and Amazon are all seeking Nvidia’s chips to power their AI initiatives.
In contrast, Apple has seen its stock underperform this year due to weaker iPhone sales and competition in China. The company has been slower to adopt AI technology compared to its competitors. With Nvidia’s rapid growth and Apple’s recent struggles, the tech landscape may be on the verge of a major shift.
Nvidia briefly touched a record high of $1,149.39 during trading, while Apple’s stock dipped slightly. Despite Nvidia’s high valuation, analysts believe that its growth is outpacing expectations and that the company’s success in the AI market is driving investor excitement. Business is booming for Nvidia, and investors are eager to be a part of it.