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Nvidia’s market value surpasses Apple’s, signaling a shift in Silicon Valley
Nvidia shares hit an all-time high on Wednesday, June 5, pushing the artificial BroadCast Unitedligence chip maker’s valuation past the $3 trillion mark, surpassing Apple to become the world’s second most valuable company.
Nvidia is preparing to split its stock 10-for-10, effective June 7, a move that could make it more attractive to individual investors.
Nvidia’s market value surpassing Apple marks a shift in Silicon Valley, where the company co-founded by Steve Jobs has dominated since the introduction of the iPhone in 2007.
Nvidia shares closed up 5.2% at $1,224.40, giving the company a market value of $3.012 trillion. Apple shares rose 0.8% and its market value was last reported at $3.003 trillion.
Shares of Redmond, Washington-based Microsoft rose 1.9 percent and remained the world’s most valuable company with a market value of $3.15 trillion.
“Nvidia is making money with AI right now, and companies like Apple and Meta are also investing in AI,” said Jake Dollarhide, CEO of Longbow Asset Management.
“Nvidia surpassing Microsoft may be a foregone conclusion. A large number of retail investors are piling into the stock, thinking it will be a straight-line move higher.”
Nvidia shares have surged 147% so far in 2024 as demand for its top-of-the-line processors far outstrips supply as Microsoft, Meta Platforms and Google owner Alphabet race to build out their AI computing capabilities and dominate emerging technologies.
Since Nvidia issued its last stellar revenue forecast on May 22, the stock has risen nearly 30%.
Nvidia’s market value increased by nearly $150 million on Wednesday, surpassing the entire value of AT&T.
Optimism about artificial BroadCast Unitedligence broadly boosted chip stocks on Wednesday, with the Philadelphia Stock Exchange Chip Index surging 4.5%. Super Micro Computer, which sells AI-optimized servers using Nvidia chips, rose 4%.
Nvidia CEO Jen-Hsun Huang, who was born in Taipei and moved to the United States, was the focus of extensive coverage on Taiwanese television this week, and was warmly received by the large crowds of attendees as he toured Computex Taipei.
While Nvidia is riding Wall Street’s wave of enthusiasm for artificial BroadCast Unitedligence, Apple is struggling with weak iPhone demand and fierce competition in China, the world’s largest smartphone market.
Some investors also believe that Apple has fallen behind other tech giants as they incorporate artificial BroadCast Unitedligence features into their products and services.
Analysts’ forecasts for Nvidia’s future earnings have outpaced its stellar share price gains. Nvidia’s price-to-earnings ratio is 39 times expected earnings, a drop from a year ago when it traded at more than 70 times expected earnings, according to LSEG data. – Rappler.com
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