NVIDIA (NASDAQ:NVDA) officially became the second most valuable publicly traded company in the world on Wednesday (June 5), overtaking Apple (NASDAQ:AAPL) as its market cap exceeded the US$3 trillion mark.
This places NVIDIA just behind Microsoft (NASDAQ:MSFT), whose market cap stands at US$3.15 trillion.
The company’s meteoric rise, which has now taken its share price to more than US$1,200, has been fueled by a surge in demand for technologies related to artificial intelligence (AI), which has seen a surge in interest since 2023.
NVIDIA’s dominance in the AI chip industry is evident, with the company reportedly accounting for around 70 to 95 percent of the market for AI chips that are used to train and deploy tools like OpenAI’s ChatGPT.
The company’s quarterly revenue reflects this growth, with US$26 billion reported in its first fiscal quarter of 2025. That’s up 18 percent from the previous quarter and 262 percent year-on-year.
The company’s share price has surged 147 percent year-to-date, following a 239 percent increase in 2023.
NVIDIA’s recent rise has also contributed to broader market trends. Both the S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) reached new record highs on Wednesday, buoyed by the optimism surrounding AI and NVIDIA.
NVIDIA was founded in 1993 and initially focused on producing graphics processing units (GPUs) for the gaming industry. Over the years, the company has diversified its product offerings, incorporating features in its chips that support machine learning and AI.
In March, the company announced the debut of Blackwell, a brand-new line of AI GPUs that promises a seismic leap in computing power compared to its predecessor, the Hopper H100. NVIDIA’s upcoming AI chip platform, Rubin, is slated for release in 2026. This platform will succeed the recently announced Blackwell chip.
The company has also announced a 10-for-one stock split, set to take effect after market close on Thursday (June 7). This move is designed to make NVIDIA more accessible to a broader range of investors by reducing its price per share.
Investors will receive nine additional shares for each share held, with the split-adjusted shares beginning to trade on June 10.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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