Nvidia’s Shares Surge, Closing in on Apple’s Market Value
In a stunning turn of events, Nvidia’s shares soared by 6% to reach a record high on Tuesday, bringing the AI chipmaker tantalizingly close to overtaking Apple in terms of market value. With Nvidia’s market capitalization hitting $2.8 trillion, it now stands just $100 billion shy of Apple’s $2.9 trillion market value, making it a major contender in the Wall Street arena.
During the trading session, Nvidia’s stock peaked at $1,149.39, marking an intra-day record high, while Apple’s stock experienced a slight dip of 0.2%. This surge in Nvidia’s shares comes on the heels of the company’s optimistic second-quarter revenue forecast, which exceeded Wall Street’s expectations, as well as the announcement of a stock split, which further fueled investor excitement.
Derren Nathan, head of equity analysis at Hargreaves Lansdown, commented on Nvidia’s growth trajectory, stating, “The market has been struggling to keep up with the company’s ever-improving growth trajectory. At a mid-thirties forward earnings multiple, this still doesn’t feel like bubble territory.”
Nvidia’s shares have more than doubled since the beginning of the year, following a remarkable performance last year. The company’s success can be attributed to its strong position in the AI market, with a five-fold increase in revenue from its data center segment reported just last week.
As Nvidia continues to attract customers seeking high-performance chips for AI computing, it remains a top choice for tech giants like Alphabet, Microsoft, and Amazon.com. With its stock rally showing no signs of slowing down, Nvidia is poised to make a significant impact on Wall Street’s landscape in the coming months.