Nvidia Overtakes Apple with $3.43 Trillion Market Value

Nvidia, a graphics chip manufacturer, has surpassed Apple in market value to become the world's largest company. In the current age of artificial intelligence, Nvidia's market value has risen to $3.43 trillion, exceeding Apple's $3.38 trillion. Under the leadership of CEO Jensen Huang, Nvidia first surpassed Apple in June, although it was only for a day.

Rise in company shares

The company's shares rose 2.9 percent on Tuesday, bringing its market cap to $3.43 trillion. Now Nvidia accounts for 7 percent of the S&P 500 index. Microsoft's market cap is currently $3.06 trillion. Nvidia reported revenue of $30 billion in the second quarter ended July 28, up 15 percent from the previous quarter and 122 percent from last year.

Huang said that there is demand for his hopper chips and there is also a lot of enthusiasm about the upcoming Blackwell chips. He said that there are large scale upgrades to AI and fast computing technology in the data center, due to which the company's earnings have reached record levels. During the first half of fiscal 2025, the chip maker returned $15.4 billion to shareholders in the form of a repurchase of shares and cash dividends.

High Speed Memory Chips

By the end of the second quarter, the company has $7.5 billion left over for share repurchases. Huang has asked SK Hynix to prepare its next-generation high-speed memory chips six months ahead of schedule. This is because the demand for AI computing chips is increasing rapidly. The demand for Nvidia's AI accelerators (which work on a lot of data to advance AI technology) has grown significantly. These accelerators need high-speed memory chips to work correctly.

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