Nvidia overtakes Apple in market value

Nvidia's AI accelerator market share is between 70% and 95% making it the leading provider of AI chips
A representation image. — Unsplash
A representation image. — Unsplash 

Nvidia, the major chip maker, has crossed a new milestone by surpassing Apple's market capitalisation. The company's products and technologies are used in a wide range of applications, including gaming, professional visualisation, datacentres, and automotive.

Nvidia has become the second most valuable company in the world. With a market cap of $3.01 trillion, Nvidia has overtaken Apple at $3 trillion. This success is attributed to Nvidia's dominance in the AI race with its flagship H100 chip, which has significantly increased its market value.

In May, Nvidia reported a profit of $14 billion due to strong demand for its chips. The company's stock has risen 29% in just nine trading sessions since announcing its quarterly results, and it plans to launch a new AI chip annually with the Blackwell B200 GPU later this year.

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Nvidia's AI accelerator market share is between 70% and 95%, making it the leading provider of AI chips. The company's success in the AI sector has increased its market cap enough to overtake Apple, which has seen steady growth in its core markets.

Apple shares are up just 5% so far in 2024, while Nvidia's stock surpassed $2 trillion in February of this year. Nvidia now trails Microsoft, which has a market cap of $3.15 trillion. The chipmaker's dominance in the AI sector has led to a significant increase in its market value, making it more valuable than Amazon and Alphabet.

Nvidia's GPU sales grew 427% year-over-year to exceed $22 billion, accounting for about 86% of its overall top line. The company has also announced a 10-for-1 stock split and a 150% increase in its quarterly dividend.