Nvidia (NVDA) has achieved a $3 trillion U.S. market capitalization, surpassing Apple (AAPL) to become the world’s second-most valuable public company behind only Microsoft (MSFT).
The world’s leading microchip company achieved the $3 trillion U.S. milestone after its stock rose 5.16% and ended the May 5th trading session at $1,224.40 U.S. per share.
At market’s close, Nvidia had a market cap of $3.01 trillion U.S. versus $2.99 trillion U.S. for Apple. Microsoft remains the most valuable publicly traded company with a market cap of $3.15 trillion U.S.
Nvidia’s shares have risen nearly 25% since the company reported first-quarter financial results in May and have increased 217% over the last 12 months.
The company controls about three-quarters (75%) of the global market for artificial intelligence (A.I.) microchips and semiconductors, enabling the current technological boom.
Owing to the huge worldwide demand for its chips and semiconductors, Nvidia reported year-over-year sales growth of more than 200% and profit growth of more than 600% in Q1 this year.
Apple’s stock has risen only 6% this year as sales of its signature iPhone stall after more than a decade of steady growth.
In its most recent quarterly earnings report, Apple reported that its iPhone sales fell 10% from a year earlier. Waning demand in China has become a particular problem for the company.
Apple was the first company to achieve a $1 trillion U.S. market cap and had long been the most valuable company before being surpassed by Microsoft earlier in 2024.
Microsoft’s stock is up 14% on the year and has also benefited from demand and hype surrounding A.I.
Along with its most recent earnings report, Nvidia raised its quarterly dividend by 150% and announced a 10-for-1 stock split that is scheduled to occur on June 10.