NVIDIA has dominated the AI semiconductor market and joined the $3 trillion market cap club on June 5.
NVIDIA’s market cap surpassed $3 trillion as its stock price surged, fueled by the surprising performance of AI server company Hewlett Packard Enterprise (HPE).
It became the third-ever member of the $3 trillion market cap club.
Apple also recovered a $3 trillion market cap for the first time in about five months but was outperformed by NVIDIA. The company edged out Apple to become the second-largest company by market cap.
NVIDIA, Second in Market Cap
NVIDIA’s market cap reached $3.07 trillion during the day, surpassing Apple’s record high of $3.05 trillion. The company grabbed the $3 trillion market cap club membership and placed second in the market cap.
NVIDIA has set a record, pushing the S&P 500 and Nasdaq indices to all-time highs. It has been leading the AI theme and has seen a 239% surge last year and a 146% surge this year.
Surged Over 20% After Earnings Announcement
NVIDIA’s stock price was sluggish in the second quarter, but it caught fire again when they announced their earnings after the market closed on May 22. It unveiled robust quarterly results that surpassed heightened market expectations and decided on a 10-for-1 stock split. Although NVIDIA’s market share in the AI semiconductor market has decreased compared to before, it still dominates 80% of the market, which is the driving force behind NVIDIA’s surge.
NVIDIA continues to show strong growth momentum. Sales of graphics semiconductors (GPUs) needed for AI were $22.6 billion last quarter, a 427% surge from the year before. This accounted for about 86% of NVIDIA’s total sales.
Apple Inc. Recovers $3 Trillion Market Cap
Although Apple was temporarily overtaken by NVIDIA in terms of market cap, it recovered a market cap of $3 trillion. It’s been about five months since January 24. Apple’s stock price has been negative since the beginning of this year, but it has recently turned around. The anticipation for the Worldwide Developers Conference (WWDC), expected to run between June 10 and 14, is boosting the stock price.
Due to the announcement, Apple’s stock price has been rising for eight trading days since May 28.
Despite the 10% decrease in iPhone sales compared to last year’s period, with concerns over slowing demand in China, expectations are high for a recovery in iPhone demand through the WWDC.
Apple was the first company to surpass market caps of $1 trillion, $2 trillion, and $3 trillion, maintaining its position as the top company by market cap, but it gave up the top spot to Microsoft Corporation(MS) in January.
