What is the true value of Nvidia stock?

Shares of Nvidia skyrocketed to record highs Wednesday, with the AI chipmaker’s stock market valuation hitting the $3 trillion mark and overtaking Apple to become the world’s second most valuable company.

Nvidia’s latest rally comes as it prepares to split its stock ten-for-one, effective on June 7, which could increase its appeal to individual investors.

The surge in Nvidia’s value in the stock market above Apple underscores a shift in Silicon Valley, which was dominated by the company co-founded by Steve Jobs since the launch of its first iPhone in 2007.

Bill Gates’ Microsoft, based in Washington’s Redmond, remains the most valuable company in the world with a value of $3.14 trillion in the market as its shares climbed by 1.5%.

Stocks of Nvidia shot up by 147% thus far in 2024, with the demand for its top-of-the-line processors far surpassing supply as Microsoft, Facebook’s parent company Meta, and Google-owner Alphabet race to build their own AI computing capabilities and dominate the emerging technology.

Stock prices increased nearly 30% since May 22, when Nvidia issued its latest stellar revenue forecast.

During Wednesday’s trading session, Nvidia’s stock briefly hit an intra-day record high of $1,223.59, giving it a $3.010 trillion value at a moment when Apple’s stood around $3.005 trillion.

The chip maker’s shares were last up 4.9% at $1,221.51, giving Nvidia a market value of $3.004 trillion.

Apple’s market capitalization was last recorded at $3.00 trillion as its shares climbed 0.7%.

Jensen Huang, CEO of Nvidia, this week was the subject of wall-to-wall coverage on televisions in Taiwan and was mobbed by attendees while visiting the Computex tech trade fair in Taipei, where he was born before moving to the US.

While Nvidia is currently riding a wave of AI enthusiasm on Wall Street, Apple is struggling as demand for iPhones weaken and the tough competition in China, the world’s largest smartphone market.

Some investors also view Apple as lagging behind other tech heavyweights as the company rushes to build AI features into their products and services.