Nvidia is poised to overtake Apple to become the world’s second most valuable company by market capitalization as investors snap up shares of the semiconductor maker whose chips power artificial intelligence tools such as ChatGPT, Reuters reports.
Nvidia’s phenomenal rise in artificial intelligence has lifted the company’s valuation from $1 trillion to more than $2 trillion in just nine months, surpassing Amazon.com, Google parent Alphabet and Saudi Aramco.
Nvidia currently has a market capitalization of about $2.38 trillion, trailing Apple by about $230 billion and Microsoft by about $645 billion.
A surge in shares of Nvidia, which controls 80 percent of the market for high-end artificial intelligence chips, helped propel Wall Street to record highs this year, giving the company a more than 5 percent weighting in the benchmark S&P 500 index.
Shares in Nvidia, up 95%, and Meta Platforms, up 46.6% this year, also outperformed other members of the so-called Magnificient 7 group, underscoring investor appetite for all things AI.
“The rally in Nvidia shares reflects the incredibly strong fundamentals that underpin its current business model,” said Richard Meckler, a partner at Cherry Lane Investments, an investment office in New Jersey.
Meanwhile, Apple, which is facing slowing iPhone sales, lost its position as the most valuable US company to Microsoft in January for the first time since 2021.
Source: Hot News
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