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Nvidia Surpasses Apple to Become the World’s Second Most Valuable Company

Nvidia has overtaken Apple to become the world’s second-most valuable company, driven by the surging demand for its AI chips. Nvidia’s market capitalization reached $3.012 trillion, surpassing Apple’s $3.003 trillion. Nvidia is now only behind Microsoft, which has a market cap of $3.1 trillion. Nvidia’s shares hit a record high, closing up over 5% at $1,224.40 on Wednesday. The company started the year with a market value of $1.2 trillion, less than half of Apple’s at that time.

The estimated share of AI semiconductor chips designed by Nvidia is 80%, according to Goldman Sachs. Nvidia’s stock has more than doubled this year, fueled by the growing AI sector. The company’s chips power AI models for major tech firms like Apple, Meta, and Microsoft. Nvidia’s recent earnings report showed a 262% year-on-year revenue increase, largely due to its “Hopper” chips. Despite attempts by rivals like AMD and Intel to compete, Nvidia remains the leader in advanced AI hardware.

Nvidia announced a 10-for-1 stock split effective June 7, making its shares more accessible to investors. CEO Jensen Huang has promised continued innovation, unveiling future products expected to drive significant revenue. Meanwhile, Apple, despite being left out of the AI hype, plans to integrate AI into its products and recently announced a $110 billion share buyback.

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