Nvidia may soon overtake Apple as the second-largest global company by market capitalization.
Shares of the artificial intelligence chip maker have risen another 20% in the past five days as the company continues to prove its worth to Big Tech and Wall Street. Nvidia reports first-quarter revenue of $26 billiononce again surpassed Wall Street expectations, sending its shares above $1,000.
On Wednesday morning, Nvidia’s market capitalization climbed to $2.8 trillion, trailing only Apple’s $2.9 trillion.
Nvidia’s exponential growth over the past year is entirely due to its integral role in the artificial intelligence takeover and the hype surrounding it. The chipmaker’s graphics processing units (GPUs) are critical hardware needed to power artificial intelligence applications. Although its competitors and its own customers have developed their own general-purpose and custom AI chips, Nvidia GPUs remain the most popular.
Nvidia said last week that demand for its H200 and Blackwell chips exceeded supply. CEO Jen-Hsun Huang said that while many customers seek the latest Blackwell GPUs, he believes demand for older Nvidia AI chips will continue.
Apple, on the other hand, has had a relatively tumultuous year in 2024. Apple’s stock is still up 9% from a year ago, but that’s nothing compared to rivals like Meta, Amazon, Google and Microsoft.
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This article was originally published in quartz.
