TOPLINE
Chip designer Nvidia surpassed Apple’s market capitalization Wednesday for the first time ever, becoming the 2nd most valuable company in the world after a year of white-hot stock gains charged by an artificial intelligence craze.
KEY FACTS
Nvidia’s market cap reached past Apple’s at market close and now boasts a whopping $3.012 trillion market cap compared to Apple’s $3.003 trillion.
Nvidia, which surpassed the likes of Amazon and Google earlier this year, still trails behind Microsoft’s market cap of $3.1 trillion.
The chip maker recorded its highest share price ever Wednesday, closing up more than 5% at $1,224.40 and continuing its gains in after-hours trading by a fraction of a percent.
Nvidia’s milestone comes after the company started the year with $1.2 trillion in market value, less than half of Apple’s $3 trillion market value at the time.
BIG NUMBER
80%. That is the estimated share of semiconductor chips used to power generative AI technology that are designed by Nvidia, according to Goldman Sachs research.
KEY BACKGROUND
Nvidia’s stock has more than doubled in price this year, trading up more than 147% since the start of January, when it traded around $481 per share. The chip maker’s success in the semiconductor market has been boiled down to its unique, fast-produced chips capable of powering artificial intelligence products. It has several big-name customers including Apple, Meta and Microsoft, the latter of which is estimated to account for 15% of Nvidia’s revenue. Nvidia’s lion’s share of AI-powering chips also gives it significant future earnings potential. The company’s stock will split 10-for-1 after market close on Friday, making its pricey stock far more accessible for investors.