Nvidia Market Cap Overtakes Apple – Where is The AI Revolution Taking The Company?

AI innovations and technologies have taken the world by storm, introducing cutting-edge ideas and powering many developers and tech startups worldwide. Pioneer technology companies have been quick to seize this trend, investing significant amounts in leading research and development efforts.

Nvidia emerged at the forefront of AI developments, which helped the company multiply its value, boosting its stock price and market share.

After repeatedly breaking its own share price record, Nvidia’s market cap overtook that of another tech giant, Apple, claiming the 2nd position behind Microsoft. In this article, we shed light on the competition between AI developers and what spurred the surging market capitalization.

Nvidia Stock Market Cap 2024

The software and technology leader might be having its best year ever. In 2024, Nvidia tripled its share price and market cap.

Investors are attributing this massive growth to the rising AI trends as Nvidia began its development stride in 2020, well ahead of the current mainstream.

Since then, Nvidia’s market cap has grown over time, with significant milestones in 2024. On June 5th, the company’s capitalization crossed $3 trillion above Apple Inc.

Nvidia’s market cap and stock price have been on a phenomenal rise since the company announced its Q1 earnings, which reported over $14.8 billion net income, way over the $2 billion it reported last year for the same period.

AI Developments Efforts

In 2023, Nvidia invested billions of dollars in 11 AI venues. Most of these ventures were in generative AI, data infrastructure, and healthcare. Arm Holdings, the semiconductor company, is the largest Nvidia investment in AI and software, with a whopping $132 billion invested in February 2024.

The company runs multiple data centers around the world, especially in Southeast Asia, where processing chips are manufactured and distributed.

Earlier this year, the company released its advanced Blackwell GPU chip, which is powered by unprecedented data and quantum computing capabilities and design automation. 

Nvidia vs Apple Market Cap

Apple’s market cap history speaks for itself. It was the first company to exceed $1 trillion and $2 trillion in market capitalization. This record was kept for around four years before Microsoft surpassed Apple and now Nvidia.

Looking at the Nvidia market cap history, the company reached its $1 trillion mark in May 2023 and $2 trillion in capitalization in February 2024. However, its ultra-fast AI investments and growth allowed the company to exponentially reach the $3 trillion market cap only four months later.

At this growth rate, it might not be long before Nvidia claims the first position despite Microsoft’s huge AI developments.

Conclusion

Nvidia’s tremendous efforts in AI seem to pay off. The company has been on a phenomenal run, overtaking Apple’s market cap and tripling its stock value.

After becoming the second-most valued company with over $3 trillion in market cap, Nvidia continues its AI development efforts with expansions in AI startups and manufacturing.

The company is now eyeing the first position currently taken by Microsoft. How long will it take the Nvidia to bypass Microsoft?