Nvidia’s stock price surged on Tuesday (May 28), reaching a record high and pushing the company’s market value closer to Apple, the current tech leader. Fueled by strong earnings and a bright future in artificial intelligence (AI), Nvidia’s shares jumped 6%, reaching a price of $1,128. This puts the company’s market capitalization at $2.8 trillion, just $100 billion shy of Apple’s $2.9 trillion value. Microsoft currently holds the title of the world’s most valuable company, with a market value of $3.1 trillion. Apple follows at No. 2.
The surge wasn’t shy – Nvidia’s stock briefly touched $1,149.39 during trading, another record. Meanwhile, Apple’s stock dipped slightly.
What triggered the rally
This rally comes after Nvidia impressed investors with a positive second-quarter revenue forecast and a stock split announcement. Analysts believe investors are excited about the company’s potential in the booming AI market.
“Nvidia’s growth is simply outpacing expectations,” said one analyst. “Even with a high valuation, it doesn’t seem like a bubble.”
Nvidia’s success is fueled by the demand for its high-performance chips, particularly in the data center segment where revenue has grown fivefold. Tech giants like Alphabet, Microsoft, and Amazon are all vying for these chips to power their AI initiatives.
“Business is booming for Nvidia,” said another analyst. “AI is a hot topic, and investors are eager to be a part of it.”
In contrast, Apple, traditionally a dominant tech player, has seen its stock underperform this year. This is likely due to weaker iPhone sales and competition in China. Unlike Microsoft, which capitalized on AI through its cloud services, Apple has been slower to adopt this technology.
Will Nvidia beat Apple to No. 3
With Nvidia’s impressive growth and Apple’s recent struggles, the tech landscape may be on the cusp of a major shift.
The surge wasn’t shy – Nvidia’s stock briefly touched $1,149.39 during trading, another record. Meanwhile, Apple’s stock dipped slightly.
What triggered the rally
This rally comes after Nvidia impressed investors with a positive second-quarter revenue forecast and a stock split announcement. Analysts believe investors are excited about the company’s potential in the booming AI market.
“Nvidia’s growth is simply outpacing expectations,” said one analyst. “Even with a high valuation, it doesn’t seem like a bubble.”
Nvidia’s success is fueled by the demand for its high-performance chips, particularly in the data center segment where revenue has grown fivefold. Tech giants like Alphabet, Microsoft, and Amazon are all vying for these chips to power their AI initiatives.
“Business is booming for Nvidia,” said another analyst. “AI is a hot topic, and investors are eager to be a part of it.”
In contrast, Apple, traditionally a dominant tech player, has seen its stock underperform this year. This is likely due to weaker iPhone sales and competition in China. Unlike Microsoft, which capitalized on AI through its cloud services, Apple has been slower to adopt this technology.
Will Nvidia beat Apple to No. 3
With Nvidia’s impressive growth and Apple’s recent struggles, the tech landscape may be on the cusp of a major shift.
How AI chipmaker Nvidia may threaten this ‘valuable’ position of Apple – Times of India added by News89 Team on
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