Nvidia has overtaken AAPL in the market cap stakes, as its valuation exceeded $3T. The company’s rise in value has been truly spectacular, increasing from $2T back in February to more than $3T just four months later.
The company is now challenging Microsoft for the title of most valuable company in the world, and for the same reason …
AI sees Nvidia overtake AAPL
BBC News reports.
Nvidia’s market value has surged past $3tn (£2.3tn), lifting the chipmaker ahead of Apple to become the second most valuable publicly listed company in the world. The firm’s share price rose more than 5% on Wednesday, to more than $1,224.
While Nvidia is best known for its high-end GPU chips used in gaming computers, it made a smart decision quite some time back to ensure its chips were also optimised for machine-learning tasks – and that bet really paid off once AI became the hottest thing in tech. That led to a massive increase in sales this year.
Nvidia has seen explosive growth, reporting sales of $26bn in the three months to 28 April – more than triple the same period in 2023, and up 18% from the previous three month.
Back in February, the company previewed a chatbot which runs on-device on a Windows PC.
AI is also behind Microsoft’s own soaring valuation, which has been significantly boosted by its investment in OpenAI – the company behind ChatGPT.
Buying shares in Nvidia is also set to become much more accessible tomorrow, thanks to a 10-to-1 stock split. Instead of having to spend over $1200 per share, you’ll be able to invest in chunks of $120-ish, meaning small investors will be better placed to buy the stock.
Apple’s own valuation has climbed 7% in the past month, the market likely encouraged by the AI announcements set to be made in next week’s WWDC keynote.
Now faces antitrust investigation
One downside of the company’s success is that it’s caught the attention of antitrust regulators, as NY Times reports.
Federal regulators have reached a deal that allows them to proceed with antitrust investigations into the dominant roles that Microsoft, OpenAI and Nvidia play in the artificial intelligence industry, in the strongest sign of how regulatory scrutiny into the powerful technology has escalated […]
Under the arrangement, the Justice Department will take the lead in investigating whether the behavior of Nvidia, the biggest maker of A.I. chips, has violated antitrust laws, the people said. The F.T.C. will play the lead role in examining the conduct of OpenAI, which makes the ChatGPT chatbot, and Microsoft, which has invested $13 billion in OpenAI and made deals with other A.I. companies, the people said.
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