Nvidia replaces Apple as world's second most valuable company
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The news: Artificial intelligence chipmaker Nvidia has overtaken Apple as the world's second most valuable company, after rallying to record highs on the Nasdaq.
The numbers: Nvidia's stock climbed 5.2% to end Wednesday's session at USD1,224.40 ($1,839.6), taking the company's valuation to USD3.012 trillion. It had added a further 1% in after-hours trading by 9:45am AEST.
Meanwhile, Apple's market capitalisation was last at USD3.003 trillion after rising 0.8% on Wednesday. Microsoft remains the world's most valuable company at USD3.15 trillion, as its shares lifted 1.9%.
Nvidia's stock has gained 147% since the start of 2024, driven up by surging demand for its graphics processing units from fellow tech giants Microsoft, Meta Platforms and Alphabet, Reuters reported.
Last month, the California-based company reported better-than-expected first quarter revenue of USD26.04 billion, up 262% year on year. It also unveiled a 10-for-one stock split, effective from 7 June, that could increase its appeal to individual investors.
The context: The chipmaker's market value has tripled in the past year, as companies compete for a limited supply for its high-end chips, as they race to build their AI computing capabilities and dominate the emerging market.
Meanwhile, Apple has struggled in recent months due to weak demand for its iPhones and rising competition in China, the world's biggest smartphone market.
The source: Reuters
