Nvidia has reached a market value of over $3 trillion, becoming the second most valuable public company in the U.S. and surpassing Apple.
This milestone was achieved on Wednesday, June 5, after a 5% rise in Nvidia’s share price.
At the close of the market, Nvidia’s value was $3.019 trillion, while Apple’s stood at $2.99 trillion, as reported by CNBC.
Microsoft remains the most valuable U.S. company, with a market value of $3.15 trillion.
Earlier this year, Microsoft overtook Apple to become the most valuable U.S. company. Apple, which was the first company to hit the $1 trillion and $2 trillion marks, has faced challenges this year, including reduced demand in China and production issues, as well as mixed reactions to its new mixed-reality headset, Vision Pro.
Both Microsoft and Nvidia have benefited from the growing interest in artificial intelligence (AI).
Nvidia, known for making AI chips, holds about 80% of the market for data center chips. The recent surge in AI demand has driven Nvidia’s share price up 24% since May and 3,290% over the past five years.
Nvidia’s earnings report on May 22 exceeded Wall Street expectations, boosting investor confidence.
The company reported an 18% increase in revenue from the previous quarter and a 262% rise compared to the same period last year.
Jensen Huang, Nvidia’s founder and CEO, credited the company’s growth to its partnerships with businesses and governments transitioning to AI-based systems, which are expected to enhance productivity across various industries.
Looking ahead, Huang announced that Nvidia plans to update its AI technology annually, with the Blackwell Ultra chip set for release in 2025 and a new AI platform launching in 2026.
He expects more companies and government agencies to adopt generative AI as this technology evolves.
