Nvidia’s shares rallied around 6% to hit a record high on Tuesday, leaving the AI chipmaker’s stock market value about $100 billion away from overtaking Apple in a significant reshuffling of Wall Street’s most valuable firms.
Reuters:
Last trading at $1,128, Nvidia’s market capitalization reached $2.8 trillion, compared to a market value of $2.9 trillion for Apple, which is Wall Street’s second-most valuable company after Microsoft.
Its stock surged as much as 8% to $1,149.39 during the session, an intra-day record high.
Nvidia’s shares have surged nearly 13% since it forecast second-quarter revenue above Wall Street expectations last week and announced a stock split, which excited investors as they continue to bet on the AI poster child.
The company’s shares have more than doubled so far this year after more than tripling last year.
Nvidia, which has been one of the biggest beneficiaries of the AI boom, reported a five-fold jump in revenue at its data center segment last week as customers line up for their high-performance chips.
Microsoft overtook Apple as the world’s most valuable company earlier this year as it raced ahead of other tech firms due to gains made by early investments in artificial intelligence across its cloud services.
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MacDailyNews Take: The fact is that, like it or not, Apple deserves to be overtaken due to being caught so embarrassingly flatfooted on generative AI. Still, Cupertino may be able to recover its footing starting at WWDC, regardless of whether it can stave off Nvidia before then.
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AAPL is an embarrassing stock, in every sense of the word. NVIDIA is absolutely bitchslapping Apple when it comes to innovation. NVIDIA is led by a visionary. Apple is led by a feckless maroon.
Imagine being dumb enough to hold AAPL while NVIDIA is up 340% in one year.
Tim is far from a moron…one doesn’t graduate f/ Duke with an MBA, with an “M” on your forehead. With that said, I posited, esp in comparison to Nvidia’s CEO, a few days ago that Cook is distracted…to be kind. Both Jensen Huang and Jobs had company “near-death” experiences and Cook has had nothing but a frothy money bubble-bath in which to luxuriate in projects that are extremely distant from “survival.”
I actually think his situ is worse than moronic as he’s riding high on the Horse Hubris with blind presumption he’s saving the World, via his “pets” as depicted in watch faces and fighting life-giving carbon. It should never be forgotten that he, with excoriation, told those holding AAPL that didn’t like his enviro commitment (with AAPL $$) to f-off…”look for another stock.” If that isn’t a pompous and distracted CEO do-gooder that would benefit from a little near-death-company trauma and not so much luck served by his predecessor, please note a better candidate.
AAPL is up around 5000% since the latter part of the Jobs era.
Yes, managed by Cook, but as a result of a deep, broad and solid foundation gifted to him to ride Horse Hubris and to stroke his pets.
Cook has NEVER experienced real stress…though he’s likely and hopefully feeling some as his China pleasure has spit back a bit. Likely and hopefully as well, as he hears a louder–though not approaching stressfully loud–call-outs for someone new that isn’t prone to annuitize everything while billions obfuscate ongoing iteration.
NVIDIA is a one trick pony. Good on them for riding this wave but it sure seems like a bubble. Maybe a competitor will make something cheaper and easier to use. Maybe the scientists will find a way to perform the calculations using almost any device. NVIDIA could lose this business as fast as they gained it. Once it starts going down we’ll see purchasing agents canceling the double and triple orders they had placed and suddenly the bookings will collapse.
I don’t think Apple was caught flat footed. Apple rarely is the leader in publicly announcing this sort of thing. Last December John Ternus and Jony Srouji gave an interview to CNBC in which they scoffed and laughed at the idea that they were behind in AI. We’ll soon find out.
It’s good let NVIDIA’s “wealth” draw the jealousy of the EU and US AG so they can leave APPL alone.
Is the Apple mushroom feeling inadequate?