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Nvidia’s market value rose past $3tn to overtake Apple on Wednesday as the world’s second-most valuable company, following a year of incredible growth driven by demand for its artificial intelligence chips. The US chip designer’s shares rose about 5 per cent to push its market capitalisation ahead of Apple for the first time — ending the day at $3.01tn, according to Bloomberg data, marginally ahead of Apple’s $3tn. The iPhone maker lost its spot as the most valuable listed company to Microsoft this year. In pre-market trading on Thursday, Nvidia’s shares were 2 per cent higher, Apple was fractionally lower and Microsoft was down 0.3 per cent. Investors have flocked to Nvidia’s stock as tech groups such as Google, Microsoft and Meta spend billions of dollars on its chips, with no indication that their spending spree will slow in the near future. Nvidia’s data centre chips power the AI models that chief executive Jensen Huang has claimed will spur a new “industrial revolution”, transforming global business with productivity-enhancing features. The company delivered another blockbuster earnings report in May, with revenues up 262 per cent year on year, thanks largely to sales of its current generation “Hopper” chips. It also announced a 10-for-one stock split, which goes into effect on June 7. Nvidia has single-handedly driven more than a third of the gains on Wall Street’s benchmark S&P 500 index this year, according to Bloomberg data, raising fears in some quarters of an unsustainable bubble. The S&P 500 rose 1.2 per cent on Wednesday and is up 12.3 per cent year to date.
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