Nvidia Set to Become the World's 2nd Most Valuable Company, Surpassing Apple

By Jace Dela Cruz

Jun 01, 2024 01:51 AM EDT

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The logo of Nvidia is seen during the Hon Hai Tech Day in Taipei on October 18, 2023.
(Photo : I-HWA CHENG/AFP via Getty Images)

Nvidia is poised to overtake Apple as the world's second-most valuable company, fueled by its dominance in the AI sector, according to a report by Reuters#mce_temp_url#

Nvidia Set to Overtake Apple

The increasing demand for AI applications like OpenAI's ChatGPT, which relies on Nvidia's high-end chips, has driven the company's market value to nearly $2.68 trillion, almost tripling in the past year.

Meanwhile, Apple, which had long been the top company on Wall Street in terms of market value, recently lost its No. 1 position with Microsoft. Apple's market value has dipped to $2.92 trillion due to declining iPhone demand and stiff competition in China.

Observers note that while Apple has long been a leader in growth and innovation, its pace has slowed, suggesting a flattening innovation curve and slower future growth. 

READ NEXT: Nvidia Stock Hits Record High, Lifting Other Tech and AI Stocks 

Nvidia's Impact on the US Stock Market

Meanwhile, according to Brian Mulberry, client portfolio manager at Zacks Investment Management, Nvidia has capitalized on successive growth waves, from gaming and cryptocurrency to AI, aligning innovation with market demand to achieve rapid expansion.

Nvidia's impact on the U.S. stock market has significantly influenced the S&P 500 and the Nasdaq. The company's performance has been a major factor in boosting U.S. stocks to record highs, contributing to more than a third of the S&P 500's gains this year. 

READ MORE: Samsung's HBM Chips Face Setbacks in Nvidia's AI Processors Due to Heat Issues 

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