How does Nvidia Corp. get to a market value of $3 trillion? It might go through Apple Inc.
The stock price of Nvidia (NVDA, +6.98%) is on a huge run, but the price of Apple (AAPL, +0.01%) has been stuck all year. The gap in market value between the two companies is now the smallest it’s been since 2009, as the chipmaker looks set to become only the third U.S. company to end the day with a $3 trillion valuation.
As of the end of trading on Tuesday, Nvidia was worth $2.848 trillion and Apple was worth $2.913 trillion. Dow Jones Market Data says that the difference between the two was $65.80 billion, which is the smallest it has been since January 20, 2009.
Since January 2009, when Apple’s market value was $69.56 billion and Nvidia’s was $3.87 billion, the gap is almost the same size as Apple’s market cap.
It’s been interesting to see Nvidia move up the market-cap charts. At this point last year, the business wasn’t worth $1 trillion. Three months ago, it wasn’t worth $2 trillion either. But it reached that first goal on June 13, 2023. According to Dow Jones Market Data, it was the fastest to go from $1 trillion to $2 trillion when it closed above that level on March 1, 2023.
Shares of Nvidia are still going up after the company’s most recent earnings report, which included another shocking prediction and positive talk about what’s to come after this quarter.
Nvidia’s stock went up 7% on Tuesday, and it’s now up about 20% in the last three trading days. Tuesday, the stock closed at $1,139.01. To reach $3 trillion, it needs to hit $1,200. But that’s based on the number of shares listed in Nvidia’s most recent annual report. That could change when the company files its 10-Q for the most recent quarter.
The $3 trillion mark has only been reached once, by Microsoft Corp. MSFT, +0.04% and Apple. Microsoft’s market value is about $3.20 trillion, but Apple isn’t there anymore.
Apple stock is down about 1%, but Nvidia stock is up 130% so far this year. The company that makes smartphones has seen its stock fall because of slow smartphone sales and questions about how much the company is doing in AI.
