Nvidia Reaches Highest Record, Exceeds Apple In Market Capitalization

JAKARTA - Nvidia hit a record high on Wednesday, June 5, where the artificial intelligence chipmaker valuation surpassed $3 trillion and beat Apple to become the second most valuable company in the world. Nvidia is preparing to make an effective ten-to-one share-breaking on June 7, a move that could increase its appeal to individual investors.

The surge in Nvidia's market value, which surpassed Apple, marks a change in Silicon Valley, which has been dominated by a company founded by Steve Jobs since launching the iPhone in 2007. Nvidia shares rose 5.2% and closed at USD 1.224.40 (IDR 19.8 million), which gave the company a value of USD 3.012 trillion. Apple's latest market capitalization was recorded at USD 3.003 trillion after its shares rose 0.8%. Microsoft, based in Redmond, Washington, remains the world's most valuable company with a value of USD 3.15 trillion after its shares rose 1.9%.

"Nvidia is currently making money from AI, while companies like Apple and Meta are actually spending money on AI," said Jake Dollarhide, CEO of Longbow Asset Management. "Maybe it has come to the conclusion that Nvidia will also beat Microsoft. There is a lot of retail money flowing in what they see as a direct spike."

Nvidia shares have surged 147% throughout 2024, with demand for its leading processor far beyond supply as Microsoft, Meta Platforms, and Alphabet are racing to build their AI computing capabilities and dominate this growing technology.

Nvidia has risen nearly 30% just since May 22, when Nvidia issued an outstanding latest revenue forecast. Nvidia added nearly 150 billion US dollars in market capitalization on Wednesday, more than the entire AT&T value.

Optimism about AI also raised widely chip stocks on Wednesday, with the PHLX chip index soaring 4.5%. Super Micro Computer, which sells optimized servers for AI built with Nvidia chips, is up 4%.

Nvidia CEO Jensen Huang, this week became the subject of massive coverage on Taiwan television and was invaded by participants as he visited a Computax technology exhibition in Taipei, where he was born before moving to the United States.

While Nvidia enjoys a wave of AI enthusiasm on Wall Street, Apple faces weak demand for the iPhone and intense competition in China, the world's largest smartphone market. Some investors also see Apple lagging behind other tech giants in the race to build AI features into their products and services.

Analyst projections for Nvidia's future revenue have surpassed its remarkable share increase. Nvidia traded at 39 times the expected revenue, making it cheaper on that basis than last year, when traded at more than 70 times the expected revenue, according to LSEG data.