Nvidia's stock reached unprecedented levels on Wednesday. According to Reuters, the AI chipmaker's valuation reached over $3 trillion, overtaking Apple as the world's second-most valuable company.
Nvidia Surpasses Apple as the World's Second-Most Valuable Company
After soaring past the $3 trillion mark, Nvidia's market valuation positioned it behind Microsoft. On Wednesday, the company's stock climbed 5.2%, closing at $1,224.40, bringing its total valuation to $3.012 trillion.
In contrast, Apple's market capitalization stood at $3.003 trillion after a modest increase of 0.8%. With a market value of $3.15 trillion, Microsoft retained its position as the most valuable company globally.
High Demand on AI
The surge in Nvidia's stock can be attributed to the high demand for its advanced processors that are crucial for AI computing.
According to Jake Dollarhide, chief executive officer at Longbow Asset Management, major tech companies such as Microsoft, Meta, and Apple are investing heavily in AI, driving up the need for Nvidia's cutting-edge chips.
Nvidia's stock has risen by 147% this year, demonstrating the high demand for AI technology. The company has long been reaping the benefits of the AI surge, unlike other big tech companies that are still investing in AI technologies.
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