Since the beginning of 2024, Nvidia, a leading chipmaker in the United States, has significantly outperformed Apple’s stock price, achieving a remarkable 25-fold increase compared to Apple. This surge in Nvidia’s stock price comes just as the company prepares for a highly anticipated 10-to-1 stock split. Since the start of the year, Nvidia’s shares have risen over 150%, whereas Apple’s shares have experienced a modest 6% year-to-date (YTD) increase.
Nvidia has additionally outshined Apple in the short term. On a monthly basis, Nvidia’s stock price climbed by 34%, while Apple’s stock saw a slight increase of just over 7%. Nvidia, being the world’s largest chip manufacturer, has seen its valuation significantly rise, mainly due to the growing demand for semiconductor chips, which are crucial for artificial intelligence (AI) algorithms.
Despite a small dip of 0.25% in pre-market trading ahead of its stock split, Nvidia shares were trading at $120.89 as of 11:40 am UTC on Monday. The stock split is scheduled to begin trading on June 10. Over the past five days, Nvidia’s shares have increased by more than 10%, showcasing strong performance even in the face of upcoming changes.
Nvidia has become the fifth of the so-called “Magnificent Seven” stocks to undergo a split since 2022. Other prominent firms that have executed stock splits include Apple, Tesla, Amazon, and Alphabet. While the stock split could potentially attract more retail investors, it may also lead to increased volatility in the stock market. Adam Coons, Chief Investment Officer at Winthrop Capital, noted that retail investors tend to make quick and emotional buying and selling decisions, potentially causing heightened volatility as institutional buyers’ influence becomes diluted.
In addition to the stock split, Nvidia’s market capitalization recently hit $3 trillion, emphasizing the company’s substantial growth driven by the rising demand for semiconductor chips. On June 5, Nvidia briefly surpassed Apple to become the world’s second-most-valuable firm before slipping back to third place. The company’s $3.01 trillion valuation marked an all-time high, although it has since settled at around $2.97 trillion.
The major driver behind Nvidia’s explosive growth is its graphical processing unit (GPU) chips, which are integral to developing AI applications. Companies at the forefront of AI development, such as OpenAI, Google, and Microsoft, widely utilize Nvidia’s chips, contributing to the sustained demand for the chip manufacturer’s products.
Nvidia’s performance suggests it might have the potential to permanently surpass Apple in the long run. If the increasing demand for Nvidia’s chips continues, especially from key AI development firms, the company could soon solidify its position as one of the top two most valuable companies globally.
Nvidia’s significant stock price growth and its upcoming 10-to-1 stock split are notable milestones for the chip manufacturer. The company’s success highlights the critical role technology, specifically semiconductor chips, plays in advancing AI capabilities. As Nvidia continues to innovate and expand its market reach, it will be interesting to observe how its position in the stock market evolves compared to other tech giants.
The 10-to-1 stock split is going to be huge. A smart move by Nvidia to attract more investors.
Remarkable achievements by Nvidia! Their stock split is definitely something to watch out for.
Nvidia overtaking Apple temporarily doesn’t mean much in the long run. Apple has brand loyalty and diverse products that Nvidia lacks. >
Astonishing performance by Nvidia! Testament to their hard work in AI and tech. Kudos!
Nvidia’s growth is unstoppable. AI and semiconductor chips are clearly where the future lies.
It’s frustrating how everyone is jumping on the Nvidia bandwagon. Remember what happens to bubbles when they burst? 💥📉
Amazing growth for Nvidia, and their upcoming stock split is the cherry on top!
Sure, Nvidias chips are in demand now, but markets are volatile. One wrong move and investors could lose a lot.
Astonishing growth for Nvidia, right before the stock split. This company is on fire!
Absolutely incredible how Nvidia’s shares have skyrocketed. AI tech is the way to go!
Nvidia’s performance this year is stunning. AI and technology are indeed the future!
Watching Nvidia’s rise feels like witnessing history in the making! So excited for their future. 📜🌟
Wow! Nvidia’s shares have risen over 150% this year. Truly impressive!
This stock split is just a ploy to lure in retail investors. Increased volatility isn’t good for long-term growth.
Incredible to see Nvidia surpass Apple, even if briefly. The potential for long-term success is pretty clear!
Excited about Nvidia’s 10-to-1 stock split! Could make investing more accessible to many.
Everyone’s focusing on Nvidia’s growth but overlooks how unpredictable the tech market can be. This could go south quickly. 😟⚠️
Too many people are making emotional buying decisions. This is exactly why stock splits can be dangerous in the current market!
Nvidia’s stock might be sky-high now, but what about the sustainability? Huge growth often comes with a big fall later. Let’s see how long this high lasts.
Just watchthis hype around Nvidia is bound to lead to more volatility than anyone wants to deal with.
Watching Nvidia’s stocks climb has been exhilarating. They’re truly making waves in the industry. 🌊📊
Nvidias success is a wake-up call for all tech investors. The future is here and it’s made of semiconductors!
Come on, Nvidia! Stop playing the stock split game. It only creates more chaos for the average investor.
Nvidia’s GPUs are the backbone of AI advancements! No wonder their stocks are soaring. 🤖🔧
Nvidia’s stock split is smart! It could bring in a wave of new retail investors. Let’s see how it plays out! 🚀💡
Nvidia has truly outperformed beyond expectations. Excited to see what the future holds!
Nvidia’s growth is a beacon of the tech industry’s future. Can’t wait to see how they evolve! 💡🔧
Nvidia’s market cap hitting $3 trillion is just the beginning. The sky’s the limit for them! 🚀🌌
The volatility introduced by the stock split is going to mess with a lot of retail investors. This is a recipe for disaster.
Incredible growth for Nvidia! It’s amazing to see them outshine Apple. Can’t wait to see how the stock split influences their future!
Incredible performance by Nvidia! Their success story is truly inspiring.
The demand for Nvidia’s chips is truly monumental. AI is the future, and Nvidia is leading the charge!
Nvidia’s rise is nothing short of phenomenal! AI and semiconductor chips are clearly the future. Go Nvidia!
Their market cap hitting $3 trillion is just WOW! Nvidia is reshaping the tech landscape.
Wow! A 25-fold increase compared to Apple is mind-blowing! Excited to see where Nvidia goes from here.
Overhyped much? Nvidia’s rise is impressive, but lets not forget how quickly markets can crash. A 10-to-1 stock split sounds great until reality hits.
Nvidia is taking the tech world by storm! This growth is a testament to the power of AI and semiconductor tech.