This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Chip designer NVIDIA Corporation pared back some of its strong share price gains today which pushed its market capitalization below Apple's. NVIDIA has been one of the strongest performing stocks on the market for the past couple of years as investors reward the firm for its artificial intelligence products. Its stock also received a lot of scrutiny yesterday, as while NVIDIA was worth slightly less than Apple at the start of trading yesterday, at market close, the shares had gained more than 5% to overtake Apple.
Now, the shares are down by nearly a percent roughly an hour and a half after market open, pushing NVIDIA's market value of $2.99 trillion below Apple's $3 trillion.
NVIDIA Dips Below Apple's Market Value As Stock Market Returns To Status Quo
Today's fall in NVIDIA's shares was accompanied by a report in the New York Times that quoted unnamed sources to share that the Justice Department and the Federal Trade Commission (FTC) will investigate NVIDIA and A.I. software firm OpenAI for having violated anti trust laws. According to the details, the two have agreed to share responsibilities. Under the agreement, while the Justice Department will investigate NVIDIA, the FTC will set its sights on Microsoft and OpenAI.
After a strong run yesterday, NVIDIA's shares dipped to $1,184 at 10 a.m. Eastern time, marking a 4.48% drop. The stock pared back most of these losses later on, but by this time, NVIDIA had lost the title of the world's second most valuable technology company to Apple. Leading the chart is Microsoft, whose shares had lost 0.42% at 10:42 a.m. Eastern time.
Microsoft's shares were down by 0.25% at 10:42 a.m., while NVIDIA's smaller rival AMD stood out from the pack as its stock jumped by nearly 2%. Like NVIDIA, AMD also had a jam packed weekend that saw it announce new A.I. products in Taiwan, and its shares have gained 1% during the week's trading so far.
The expected anti trust woes for NVIDIA, OpenAI and Microsoft are the latest in a series of regulatory actions by the U.S. government against big tech. Nearly every major technology company, from Google parent Alphabet to Apple, has faced off either with the Justice Department or the FTC in court. These have caused officials to question Google's dominant position in the search engine market and Apple's closed software ecosystem in their bid to open up the industry.
While the latest share price movements had pushed Apple's market value higher, NVIDIA continued to pare back its losses while Apple slipped further by 10:50 a.m. By this time, both firms were worth $3 trillion, as their share price movements opened up the stocks for an interesting rematch today.
However, this proved to be short lived as NVIDIA's stock dropped by 1.16% during the day at 10:52 a.m. for a market value of $2.98 trillion. At the same time, Apple's losses had narrowed to 0.13%, ensuring that its market value sat at a comfortable $3 trillion.
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.
Follow Wccftech on Google to get more of our news coverage in your feeds.
