Nvidia’s Market Capitalization Tops 3 Trillion US Dollars, Surpassing Apple to Become the World’s Second Largest After Microsoft

07 June 2024 55


On June 6, 2024, the tech world witnessed a historic moment! Shares of artificial intelligence chip giant Nvidia experienced an unprecedented surge of 5.2%, with its market capitalization surpassing $3.01 trillion. By the end of the day, Nvidia’s market capitalization had surpassed that of electronics juggernaut Apple. Although Apple has long occupied an important position as the world’s most valuable publicly traded company, its market capitalization fell behind Nvidia at this critical moment. This shift certainly marks the rapid rise and significant impact of AI chip technology on a global scale.


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Looking back, Nvidia’s market capitalization has grown at a staggering rate. In just one year’s time, its market capitalization grew rapidly from 2 trillion dollars to 3 trillion dollars, and this amazing growth took only about three months. This growth rate not only set a historical record in the technology industry, but also made people full of infinite expectations and imagination for Nvidia’s future development.


The surge in Nvidia’s stock price is not accidental, and there are many reasons behind it. On the one hand, this remarkable achievement stems from Nvidia’s continuous investment and unremitting pursuit of technology. Since its establishment in 1993, Nvidia has always focused on the design and sales of graphics chips, and has gradually developed into one of the world’s largest graphics processing unit (GPU) manufacturers with its outstanding technical strength. However, Nvidia is not satisfied with the status quo, but has keenly captured the new trends in the market, actively expanded its business areas, and firmly entered the field of artificial intelligence.


With the rapid development of AI technology, Nvidia has made remarkable achievements in the field of AI with its powerful GPU computing capabilities. Its GPU products are not only widely used in deep learning, machine learning and other fields, but have also become the preferred computing platform for many technology giants and research organizations. It is based on this market position and technical strength that makes Nvidia occupy a pivotal position in the AI chip market, which in turn drives the surge in its stock price.


Among them, Nvidia’s founder and CEO Jensen Huang is the key promoter of this technological transformation. He has a deep insight into the development of AI technology that will lead the next wave of industrial revolution, and firmly believes that Nvidia can become the pioneer of this revolution. Under Jensen Huang’s leadership, Nvidia has not only made breakthrough progress in the field of AI hardware, but has also made significant investments in software and services to fully support and accelerate the application of AI technology.


On the other hand, Nvidia also launched a “one-for-ten” stock split plan, which is to split the original share into ten shares. After the implementation of this plan, the stock price will drop significantly compared to before the split, thereby greatly improving the liquidity of the stock. According to the split ratio, the adjusted Nvidia stock price will drop to one-tenth of the pre-split price. This means that more investors can buy Nvidia shares at a relatively low cost, thereby sharing the benefits of the company’s future growth. This undoubtedly opens up a new path for investors who want to invest in cutting-edge technology companies but are limited by the size of their funds, giving them the opportunity to participate in Nvidia’s growth.


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Regarding the surge in Nvidia’s share price, Dan Coatsworth, an investment analyst at AJ Bell, said: “Nvidia’s business is developing strongly and has broad growth prospects, and the theme of artificial intelligence remains vibrant and influential. Investors seem to be deeply attracted by this moving melody and can’t stop.”


But for Apple, this time Nvidia’s market value surpassing is not only another challenge after losing the top spot, but also a severe test of its market position. Apple’s stock price has only risen by about 5% this year, and this growth momentum has obviously lagged behind other technology giants, especially emerging forces such as Nvidia. One of the reasons for this situation is that Apple’s sales growth has stagnated in recent months. In its most recent quarterly financial report, Apple publicly stated that its overall sales fell by 4% year-on-year, which is a downward trend that cannot be ignored. More worryingly, sales of the iPhone, Apple’s core product, also fell 10% year-on-year. And earlier this year, Microsoft had already managed to overtake Apple to leapfrog the world’s highest market capitalization by virtue of its significant strengths in cloud computing and AI.


Nvidia’s market capitalization surpassing Apple to become the second highest in the world is an important milestone in the development of the technology industry. It not only demonstrates Nvidia’s outstanding strength and broad prospects in the technology sector, but also reflects the high recognition and expectations of global investors for technology innovation companies. Looking ahead, we believe Nvidia will continue to maintain its industry-leading position and create more remarkable and brilliant achievements.




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