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The market open after highly hyped artificial intelligence events in Taiwan led by NVIDIA is seeing the firm near the multi trillion dollar market capitalization of Cupertino technology giant Apple. Apple, the world's second most valuable technology company with billions of dollars in revenue has dominated Wall Street when it comes to market capitalization for years. NVIDIA, on the other hand, has seen its shares jump by 36x over the past couple of years accompanied by revenue growth fueled by enterprise computing applications that cover traditional and accelerated computing workloads.
NVIDIA Needs Less Than $100 Billion In Market Value Boost To Surpass Apple
Despite the fact that both firms operate in the broader technology industry, Apple and NVIDIA are fundamentally different companies. The former is not only older than NVIDIA, but it primarily targets consumers with its products while NVIDIA's products, as of late, have catered mainly to enterprises and businesses for their analytics and other computational workloads.
The weekend saw NVIDIA CEO Jensen Huang add a couple of years to his timeline of the shift of global enterprise computing workloads from traditional to accelerated computing. NVIDIA announced a batch of new products that it will launch in 2026, as it built on a slew of product releases over the past year or so that are directed solely to meet the needs of A.I. users.
Today's pre market session marked the third day of investors voting with their money since the weekend announcements. It is seeing NVIDIA's shares add nearly 2% to Friday's gains, creating value just as the stock is due for a ten for one split announced at NVIDIA's earnings earlier this year. The latest earnings pushed NVIDIA's trailing twelve month revenue to $79 billion, nearly 5x of its value in 2021. NVIDA's stock is due for a split later this week, and it should bring the share price down enough to facilitate increased liquidity.
NVIDIA and AMD's shares have gained roughly the same percentages in pre-market trading, while Apple's stock has added 50 basis points in value. Apple's characteristic approach of letting technology trends play before showing its hand has also irked some of the strongest proponents of artificial intelligence in the technology industry. As a result, rumors are rife for an A.I. related update from the firm, with some expecting it to take place as soon as later this month.
Despite the fact that Apple is a mere ~$120 billon ahead of NVIDIA in the race to the highest market capitalization, the two firms' income statements are on different ends of a spectrum. While NVIDIA's $79 billion in TTM revenue is a hefty bump over 2021, Apple has raked in $381 billion in sales in its four latest quarters. Multiple wise, NVIDIA's shares traded at 44 times price to forward earnings, with Apple's stock being more down to earth with a forward P/E of 26 last week.
When compared to NVIDIA, Apple's shares have remained lackluster in 2024. With the year's first half nearly over, the stock is up just 5%. NVIDIA's shares have also returned more since their stock market debut in percentage terms, and both are dividend paying stocks. NVIDIA's shares were 1.4% higher five minutes after the opening bell, leading Apple's 0.37% of gains, with their market capitalization being $2.92 trillion and $2.99 trillion, respectively.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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