Shares of Nvidia surged more 5% on Wednesday hitting a new all-time record high of $1,224.40 and giving the company a market cap above $3 trillion for the first time. The stock’s advance pushed Nvidia past Apple, making it the world’s second-most-valuable company, after Microsoft.
Daniel Howley for Yahoo Finance:
Nvidia has been the poster child for investor enthusiasm in AI, which accelerated with OpenAI’s release of ChatGPT in late 2022.
The stock is up over 140% this year and 200% over the last year; Nvidia shares have gained more than 3,300% in the last five years. Over those same periods, the Nasdaq has gained a more modest 14%, 29%, and 126%, respectively.
Nvidia is the tech industry’s go-to supplier for AI chips and integrated software.
Tech behemoths, including Amazon, Google, Meta, Microsoft, Tesla, and others, use its hardware to power everything from their cloud-based AI offerings for customers to their own AI models and services.
Nvidia also announced that its stock would undergo a 10-for-1 split on June 7, and the company will raise its dividend from $0.04 per share to $0.10 per share.
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MacDailyNews Take: Apple today also rose modestly, regaining entry into the $3 trillion club it established on January 3, 2022
The Top 3 market values:
- Microsoft: $3.151 trillion
- Nvidia: $3.012 trillion
- Apple: $3.003 trillion
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Bland beancounter blanches.
The chances that competitors will overtake Nvidia in AI chips, or at least erode its current leadership position, is much higher than Apple being overtaken by competitors. Just by history, with Apple being at the top for as long as it has.
Apple has already been overtaken by their main competitor, Microsoft. It doesn’t mean they’ll become irrelevant and disappear, but the trajectory they’re on is taking them towards Johnson & Johnson, Procter & Gamble, Coca-Cola territory. Revolutionary products and substantial growth are behind them, repeat iPhone buyers and subscriptions are their present and future.
AAPL net income is significantly higher than MSFT.
Most Apple fanboys (including MacDailyNews) never saw Microsoft overtaking Apple. What ever happened to Apple producing its own car? Oh yeah, it didn’t want to do it. What a waste of money and time. Apple has run out ideas and relies on cash cow products instead of innovating. Wakey wakey Tim Cook!!
With Siri soon coming out with a cute new outfit with patent leather shoes, AAPL is sure to remount the throne. Reece’s recent (and ground-breaking) Book Club announcement is sure to have a material effect as well. Earlier today, AAPL was just over a penny shy of ATH…so, Mr. Wooden is still swinging for the fences (with the annuity bat).
NVDA is a meme stock. The younger generation just jumps from on thing to another (e.g. bitcoin, TSLA, Redfin, Game Stop, et al.).