With markets now closed, A.I. chip maker NVIDIA Corporation has crossed the consumer technology giant to become the world's second most valuable technology company. Data from the Nasdaq exchange shows that NVIDIA's market cap at market close today sat at $3.012 trillion, or $12 billion above the $3 trillion mark. In contrast, Apple is currently worth $3.003 trillion on the stock market, implying that NVIDIA is now worth a mere $9 billion more than the world's largest or second largest technology company in terms of revenue.
NVIDIA Gains 5% During Day's Trading To Inch Close To Microsoft In Race To Become World's Most Valuable Technology Company
Ahead of today's session, NVIDIA and Apple were worth $2.92 trillion and $2.99 trillion, leaving the former less than ten billion dollars shy of overtaking Apple. At close, Apple and NVIDIA are both worth $3 trillion, and NVIDIA is leading Apple by $9 billion in market value after it added more than 5% during the session.
However, the trading bands for NVIDIA and Apple's shares are quite different. During the day, Apple's shares fluctuated between a high of $196.90 and a low of $194.88, eventually setting to a closing price of $195.87. NVIDIA's closing price matched its intra day high. In fact, during the day, the shares sank to $1174.68 early during the session. Their intra day high was $1,224.49, just nine cents higher than the closing price.
The surge in NVIDIA's share price is also reflected in after market trading. Since market close, the stock has added another 57 basis points in value. On the other hand, shares of NVIDIA's smaller rival AMD and A.I. giant Microsoft were initially down four and 15 basis points, respectively. However, AMD later went green and added 16 basis points.
The downward trend in aftermarket trading is across the board, as Google parent Alphabet, Apple, Meta and chip manufacturer Intel are all in the red roughly an hour after market close. NVIDIA's latest share price gain also means that if the gains hold and investors see the firm maintain the trend of securing the global shift to accelerated computing from general purpose computing, then NVIDIA could surpass Microsoft to become the world's most valuable technology company.
NVIDIA's shares have gained more than eight percent since market open on Monday, which was the first trading session after this weekend's Computex conference in Taiwan. The event saw NVIDIA CEO Jensen Huang take to the stage once again and announce his firm's next generation artificial intelligence chips.
However, while NVIDIA might have outshone Apple and closed in on Microsoft in the market capitalization race, the shares' fast growth has pushed down their dividend yield. Apple, Microsoft and Intel have annualized dividend yields of 0.51%, 0.72% and 1.67%, respectively. On the other hand, NVIDIA's shares are currently yielding 0.01% but offering investors a lot more in share price gains.
An hour after market close, NVIDIA's stock had gained 0.87%, as it maintained its momentum during the day. While it might be more valuable than Apple, the next and final rung on the market value ladder is Microsoft's market capitalization of $3.15 trillion. To surpass Microsoft, NVIDIA will have to gain roughly $139 billion.
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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