Nvidia Outranks Apple to Become Second Most Valuable US Company

Nvidia’s market value hit $3.019 trillion on Wednesday, June 5, a 5% rise in shares, edging Apple’s $2.99 trillion market cap. The company is now the second most valuable public U.S. company.

Microsoft is the most valuable U.S company with a market cap of $3.15 trillion. Apple held this spot until Microsoft surpassed it earlier this year.

Apple was the first company to reach $1 trillion and then $2 trillion in market value but the company’s growth tanked this year due to demand issues in China, manufacturing challenges, and the reception of its Vision Pro headset.

AI infrastructure and market share

Nvidia and Microsoft are beneficiaries of the Artificial Intelligence (AI) boom, as investors jostle to profit from the early mover window.

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Nvidia, which makes AI chips and holds about 80% of the market for data center chips, has seen its shares rise 24% since its first-quarter earnings report in May and 3,290% over the past five years.

Nvidia’s revenue for the quarter exceeded Wall Street expectations. It increased by 18% from the previous quarter and by 262% from the same period in 2023.

Reasons for rapid growth

Jensen Huang, Nvidia’s CEO, hinged the revenue growth on the company’s partnerships with companies and countries transitioning to “AI factories.”

According to Huang, Nvidia will launch its Blackwell Ultra chip in 2025 and a next-generation AI platform in 2026 as believes more companies and governments will adopt generative AI.