3 months ago
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Nvidia is the second largest company in the US, now only behind Microsoft, which overtook Apple earlier this year.
American multinational software and fabless company Nvidia Corp (NASDAQ: NVDA) saw its market capitalization surpass Apple’s to become the world’s second-most valuable public company. Nvidia is now only behind Microsoft Corp (NASDAQ: MSFT), owing to strong demand for the company’s chips for artificial intelligence (AI) purposes.
Nvidia Rising Past Apple with Stock and Market Cap Increases
On Wednesday, Nvidia’s shares climbed 5%, pushing the company over a $3 trillion market cap. The market closed with Nvidia at $3.019 trillion, while Apple was at $2.99 million. As of this writing, Nvidia is still above $3.01 trillion, while Apple has climbed slightly to $3 trillion.
The same data shows that Nvidia has climbed nearly 11% in the last five days and about 38% in a month. The chip designer’s stock has also pumped over 147% since January and over 24% since it published its first-quarter earnings report in May. Following reported figures that surpassed analyst estimates, the company’s shares crossed the $1,000 mark for the first time. Current data shows Nvidia stock is at $1,243 in premarket trading.
Nvidia’s Q1 figures include GAAP earnings per diluted share at $5.98, a 21% rise from the previous quarter, and an impressive 629% jump from the year before. For non-GAAP, earnings per diluted share was $6.12, up 19% from the previous quarter, and 461% from the year before. LSEG estimates had expected $5.59.
Furthermore, Nvidia recorded $26 billion in quarterly revenue, a 262% increase from a year ago and 18% from the previous quarter. LSEG estimates had this revenue at $24.65 billion.
Nvidia is bullish about the second quarter of its fiscal 2025, expecting revenue at $28 billion, up from $26 billion for Q1. The company expects income at about $300 million, with GAAP gross margins at 74.8%. Since Nvidia began focusing on its AI business, the company’s stock has considerably spiked. Over the last five years, its shares have jumped at least 3,000%.
Slower Apple Growth
On the other hand, Apple has had much slower growth. According to current MarketWatch data, Apple Inc (NASDAQ: AAPL) has only climbed 1.73% since January, and 6% in the last month. The company said its quarterly revenue hit $90.8 billion in fiscal Q2 2024 ended March 30, a 4% reduction year over year. In addition, iPhone sales fell 10% year over year.
The company’s iPhone revenue was $45.96 billion versus $46 billion estimated, with iPad revenue at $5.6 billion versus $5.91 billion estimated. Fortunately, Apple’s Mac revenue hit $7.5 billion, higher than the estimated $6.86 billion. Apple’s announcements did not include any official outlook for the next quarter.
Apple has been struggling with a few unfortunate factors, including manufacturing, lower demand especially in China, and generally mixed reactions to the Vision Pro, its new virtual reality headset.
Interestingly, Apple was the most valuable company in the United States for a while. It was also the first company to hit a $1 trillion and $2 trillion market cap. However, Microsoft surpassed Apple earlier this year, benefitting from involvement in AI, similar to Nvidia.
Generally, investors seem very interested in Nvidia as many AI projects use the company’s chips for their products, pushing the AI boom further.
