Nvidia on Wednesday briefly surpassed Apple in total market capitalization, as both companies crossed the $3 trillion threshold. Now the companies trail only Microsoft, which has a $3.14 trillion market capitalization.
The iPhone maker was the first company to ever reach a $3 trillion market cap last June. It fell out of the $3 Trillion club earlier this year as the stock slumped amid a host of struggles to start 2024. But it has rebounded in recent weeks, and it re-entered the club with a $3.004 trillion market cap on Wednesday.
And AI chip maker Nvidia’s market cap surpassed Apple’s, at $3.005 trillion during intraday trading on Wednesday, as investors eagerly anticipate a 10-for-1 stock split scheduled for Friday.
Apple stock was up about 1% in late-afternoon trading on Wednesday to about $196 per share. Nvidia stock was up almost 5% to about $1,220 per share.
Nvidia’s strong earnings and new AI chips
Nvidia’s share price has surged by 132% so far this year and by 193% in the past year. In the past five years, the stock has seen an astronomical rise of 3,174%.
Nvidia beat Wall Street’s expectations for its first-quarter earnings results, reporting revenue of $26 billion for fiscal year 2025 — up 262% from a year ago. The boost was driven by high demand for its Hopper GPUs, or graphics processing units, which are used in training and inferencing leading large language models (LLMs), Nvidia said.
The chipmaker announced its next-generation Blackwell AI chip platform in March, and demand for both Hopper and Blackwell chips are exceeding supply, Huang said during the earnings call. He added that the company sees continued demand for Hopper despite fears of a pause as customers wait for Blackwell, which it expects to ship later this year.
AI has also boosted Apple
Apple announced better-than-expected results for the second fiscal quarter and its stock price has risen since then.
In its latest earnings report since the company announced its largest-ever stock buyback, authorizing $110 billion in share repurchases and raising its cash dividend by 4%. It beat Wall Street’s expectations, reporting sales of $90.8 billion for the three months ended March 30.
In addition, the iPhone maker is focusing on AI innovation. The tech giant is partnering with OpenAI to integrate its chatbot, ChatGPT, into the iPhone’s operating system. Apple is expected to announce the deal at its annual Worldwide Developers Conference which starts on June 10. The agreement will reportedly give the ChatGPT-maker access to potentially millions of Apple users, as the chatbot’s capabilities get paired with Apple’s applications and services.
Not only this but Apple is also pushing the world into the next era of telecommunications, this one characterized by a new type of device: AI-powered “IntelliPhones” – devices that offer everything from virtual and augmented reality experiences to AI-generated personal assistance.
–Britney Nguyen and Laura Bratton contributed to this article