AI darling Nvidia’s market value soars toward Apple

0
26
AI darling Nvidia’s market value soars toward Apple
AI darling Nvidia’s market value soars toward Apple

Nvidia’s shares jumped over 6% to reach a record high on Tuesday, marking a huge restructuring of Wall Street’s top players.

In a significant reorganization of Wall Street’s top players, Nvidia’s (NVDA.O) shares surged over 6% to reach a record high on Tuesday, putting the AI chipmaker’s stock market worth approximately $100 billion short of surpassing Apple’s (AAPL.O).

With its most recent trade of $1,128.00, Nvidia’s market capitalization was $2.8 trillion, while Apple, the second-most valuable business on Wall Street after Microsoft, had a market value of $2.9 trillion.

During the day, the stock rose 8% to $1,149.39, a record intraday high. A 0.2% decrease in Apple’s stock was seen in the afternoon trade.

Since Nvidia revealed a stock split and exceeded Wall Street projections for second-quarter sales last week, the company’s shares have increased by about 13%, thrilling investors as they continue.

The market has been finding it difficult to match the company’s consistently positive growth trajectory. This still doesn’t feel like bubble territory at a mid-thirties forward earnings multiple, according to Derren Nathan, head of stock analysis at Hargreaves Lansdown.

As per LSEG statistics, Nvidia recently traded at 36 times its forward profit expectations, while Advanced Micro Devices (AMD.O.) traded at 38 times and Intel (INTC.O.) at 21 times.

After more than tripling in value last year, the company’s shares have more than doubled so far this year.

One of the largest winners from the AI boom, Nvidia, revealed last week that sales at its data center division had increased fivefold as demand for its high-performance chips grew.

Google (GOOGL.O), Microsoft (MSFT.O), Amazon.com (AMZN.O), and other tech giants have been vying for a restricted quantity of Nvidia’s top-tier chips in an attempt to take the lead in artificial intelligence computing.

“Business is booming, there are tons of chances to expand, and the AI concept is still relevant. When asked about the stock’s surge, Dan Coatsworth, an investment analyst at AJ Bell, responded, “When the song is that catchy, investors want to keep humming it all day long.”

Long seen as a Wall Street must-own, Apple has lagged behind other large technology firms in recent months. This year, the company has lost around 2% of its value as a result of sluggish iPhone demand and fierce competition in China.

Earlier this year, Microsoft surpassed Apple to become the most valuable corporation in the world. The company’s early investments in artificial intelligence throughout its cloud services allowed it to outpace other digital companies.

Tuesday’s 0.4% decline in Microsoft’s stock valued the company at $3.1 trillion.

Comparatively speaking, Apple has lagged behind rivals like Microsoft and Google in integrating generative AI—which produces replies to textual cues that resemble those of a human—into its products.

Also readUnveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity

Do FollowCIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter 

About us:

CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.

CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.