Nvidia's stocks rallied to record highs on Wednesday, with the artificial intelligence chipmaker's valuation breaching the $3 trillion mark and overtaking Apple to become the world's second-most valuable company.
Nvidia is preparing to split its stock ten-for-one, effective June 7, a move that could increase its appeal to individual investors.
The surge in Nvidia's market value above Apple's marks a shift in Silicon Valley, which the company co-founded by Steve Jobs has dominated since it launched the iPhone in 2007.
Nvidia's stock rose 5.2 percent to end the day at $1,224.40, valuing the company at $3.012 trillion. Apple's market capitalization was last at $3.003 trillion after its stock climbed 0.8 percent.
Microsoft, based in Redmond, Washington, remained the world's most valuable company at $3.15 trillion after its shares climbed 1.9 percent.
"Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI," said Jake Dollarhide, chief executive officer at Longbow Asset Management.
"It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There's a lot of retail money that's piling in on what they see as a straight shot up."
Nvidia's stock has surged 147 percent so far in 2024, with demand for its top-of-the-line processors far outstripping supply as Microsoft, Meta Platforms and Google-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology.
While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple is struggling with weak demand for iPhones and tough competition in China, the world's biggest smartphone market.
Some investors also view Apple as lagging other technology heavyweights as they rush to build AI features into their products and services.
Analysts' projections for Nvidia's future earnings have outpaced its stellar stock gains. Nvidia is trading at 39 times expected earnings, making it less expensive on that basis than a year ago, when it traded at over 70 times expected earnings, LSEG data showed.
(Cover via CFP)