Nvidia on verge of overtaking Apple as No. 2 most valuable company

By Noel Randewich

(Reuters) -Shares of Nvidia rallied to record highs on Wednesday, with the AI chipmaker’s stock market valuation on the verge of hitting the $3 trillion mark and overtaking Apple to become the world’s second most valuable company.

The latest rally in Nvidia comes as it prepares to split its stock ten-for-one, effective on June 7, a move that could increase its appeal to individual investors.

Nvidia’s stock has surged 145% so far in 2024, with demand for its top-of-the-line processors far outstripping supply as Microsoft, Meta Platforms and Google-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology.

It has rallied 28% just since May 22, when Nvidia issued it latest stellar revenue forecast.

Optimism about AI lifted chip stocks broadly on Wednesday, with the PHLX chip index surging about 4%. Super Micro Computer, which sells AI optimized servers built with Nvidia chips, climbed nearly 5%.

Nvidia CEO Jensen Huang this week was the subject of wall-to-wall coverage on Taiwanese television and was mobbed by attendees when he visited the Computex tech trade fair in Taipei, where he was born before moving to the United States.

The Silicon Valley chipmaker’s stock was last up 4.2% at $1,212.89, giving Nvidia a market value of $2.98 trillion.

Apple’s market capitalization stood at $3.01 trillion as its stock climbed 1.2%.

Microsoft remained the world’s most valuable company, with a market value of $3.14 trillion as its shares climbed 1.6%.

While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple is struggling with weak demand for iPhones and tough competition in China, the world’s biggest smartphone market.

Some investors also view Apple as lagging other technology heavyweights as they rush to build AI features into their products and services.

(Reporting by Noel Randewich, Editing by Nick Zieminski)

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