into chip technology. Nvidia has become the second most-valued company after the market cap leader, Microsoft.
Artificial intelligence is raising the value of our products, the trend being responsible for the growing demand for AI. The need for Nvidia’s AI chips was demonstrated in the previously low market price expectations for its shares. CEO Jensen Huang mentioned that the company anticipates increased revenue following the launch of Blackwell, their first next-generation AI chips, later this year. Jensen Huang was right; the need for AI chips grew rapidly and is reaching historical points.
Even more so, Nvidia reached a $3 trillion market cap valuation this Wednesday after an impressive rise of 5%. After the market closing, Nvidia had a market valuation of $3.019 trillion compared with Apple's valuation of $2.99 trillion. However, it is also worth mentioning that the market cap leader is Microsoft; at the moment, the tech company is valued at $3.15 trillion.
After the chip company reported its first-quarter earnings, the share prices rose by 24%, constantly growing since May last year. Nvidia shares an estimated 80% of the AI chip for data centers, which is why the company received billions of dollars from cloud vendors.
Nvidia’s sales are also expected to persist after the company's immense growth will persist. For the majority of cloud companies, the predicted trajectory is toward growth, as after the most recent quarter, the data center business, including GPU sales, rose 427% within a year. It has a continuous transformation from $22.6 billion, which means an 86% growth in Nvidia’s sales.
On the other hand, Apple's share grew only 5% this year as the sales of their products have encountered a hold-up in recent months. Apple stated in its quarterly earnings report that the sales of its products have fallen by 4% and that its iPhone sales dropped by 10% compared with their last year. Apple has also been facing strategic problems with the demand from China.
Apple was the first company to reach a $1 and $2 trillion market cap after a long period of being the leading market holder in the U.S., which was surpassed earlier this year by Microsoft. Nvidia shares are expected to grow in the next period, being more volatile than Apple's.
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