Nvidia recently overtook Apple to become the world’s second most valuable public company. What a great achievement! Apple’s place and value in technology is huge, but Nvidia seems to have surpassed Apple with its artificial intelligence initiatives.
Tech giant Nvidia’s market capitalization has surpassed $3 billion after a significant increase in share prices. On Wednesday, Nvidia’s share price surged to over $1,224 a share.
As we said, the company has been going through an impressive period of growth that began last year, largely fueled by investments in artificial intelligence.
Nvidia’s market capitalization rises
Although Nvidia has overtaken Apple, it has fallen behind Microsoft, whose power has grown exponentially thanks to ChatGPT’s investments in developer OpenAI. It’s also worth noting that Nvidia was valued at $2 million in February. Can you see the vast difference?
On the other hand, the company announced a stock split last month that attracted a new wave of investors. This split, which will take place on Friday, will increase the number of shares tenfold, making them accessible to smaller investors and potentially increasing demand even more. So those who own shares are very lucky!
When Nvidia was first founded, it was known for producing video cards used in computer games. Today, the growing interest and investment in artificial intelligence have led the company into this field to survive and make money. Like many companies, Nvidia and its products have started getting their share of artificial intelligence.
So much so that there is incredible competition in the sector. In recent weeks, the Google I/O event and OpenAI’s Spring Update have left their mark on the sector. Now Nvidia’s CEO Jensen Huang has described AI as the dawn of the “next industrial revolution”.
Microsoft’s Copilot+ PCs have also made their mark. Almost all the devices we buy now come with AI integrated into them. Is this a good thing? That’s debatable.
In the three months to April 28th, Nvidia reported staggering growth, with sales reaching $26 billion—three times more than in 2023!
Apple seemed to lose momentum earlier this year as sales growth slowed. In recent weeks, however, Apple’s share price has seen a revival, driven by expectations for the company’s AI strategy. Apple’s shares rose 0.7%, raising its market capitalization to about $3 million. Market capitalization is usually calculated by multiplying a company’s total number of outstanding shares by its current share price.
Nvidia’s rise highlights the enormous potential of AI technology and underscores the company’s leadership in the industry. Nvidia’s future developments and strategic moves in AI will undoubtedly interest both tech enthusiasts and industry observers.
Featured image credit: Barış Selman