Nvidia Just Passed Apple’s Market Cap

Highlights

• Nvidia’s market value surpasses Apple’s, fueled by AI technology, making it the second-largest U.S. company.
• Despite price increases in China, Nvidia’s cutting-edge tech drives market success with $26 billion in earnings.
• Nvidia’s focus on AI revolution leads to 769% profit increase, surpassing gaming revenue, and future collaborations for AI-powered PCs.

Nvidia has surpassed Apple in market value, reaching a very high market cap thanks to the AI boom. This remarkable achievement places Nvidia just behind Microsoft, making it the second-largest public company in the U.S. The surge is largely attributed to the growing demand for Nvidia’s advanced AI technology, which has been a key driver of the company’s rapid ascent in recent years.

This milestone comes despite the recent price increases on Nvidia products in China, where partners like Asus, GALAX, and Colorful have raised prices by up to 10% on GeForce RTX GPUs. Despite potential concerns about consumer perception and sales, Nvidia’s cutting-edge technology continues to drive its market success. The company reported first-quarter earnings of $26 billion in May, more than triple its revenue from the same period last year, indicating sustained high demand for its products.

According to CNBC, Nvidia’s shares closed at $1,224.40 on Wednesday, June 5, marking a historic moment as the company’s market cap exceeded $3 trillion for the first time. Nvidia’s impressive market performance follows a period of significant growth, with the company’s stock soaring over 3,224% in the past five years. In February, Nvidia’s market value was $2 trillion, and it has taken just a few months to reach $3.01 trillion. This growth is not only due to the tech giant’s gaming GPUs but also its pivotal role in AI development, supplying chips to major companies like Google, Microsoft, Meta, Amazon, and OpenAI. Nvidia’s GPUs are essential for creating and deploying large AI models, fueling the current AI revolution.

Nvidia Continues to Boost the AI Revolution

Nvidia’s growth is further underscored by a staggering 769% increase in annual profit reported earlier this year. The company’s data center revenue has surpassed gaming as its primary income source, reflecting its strategic shift towards AI. Although gaming now accounts for only 12% of Nvidia’s total earnings, the focus on AI has significantly boosted investor confidence and market value. Nvidia’s rise to a $3 trillion market cap highlights its pivotal role in the AI boom and its dominance in the tech industry.

Looking ahead, Nvidia is set to further its AI ambitions through potential collaborations with industry giants like Dell. At the recent Dell World Conference, CEOs of Dell and Nvidia hinted at developing AI-powered PCs expected to debut in 2025. This partnership, along with Nvidia’s ongoing work with MediaTek on ARM-based chips, indicates a future where AI integration in personal computing becomes standard, further solidifying Nvidia’s market leadership.

The company’s innovation is not limited to hardware; Nvidia recently launched Project G-Assist, an AI tool that provides real-time game tips and performance tweaks, showcasing its commitment to enhancing user experiences through AI. The company’s advanced GPUs and innovative AI solutions have driven significant growth, and Nvidia is well positioned to lead the industry into the next era of technology. As Nvidia continues to expand its AI capabilities and explore new collaborations, it remains a key player in shaping the future of artificial intelligence.