Nvidia outperforms Apple by 25x, ahead of 10-to-1 stock split
Update June 10, 1:15 pm UTC: This article has been updated to include quotes from Gurps Rai and Ilan Rakhmanov.
United States chipmaker Nvidia has outperformed Apple stock price by over 25-fold since the beginning of 2024, as its much-anticipated 10-to-1 stock split is about to start trading.
Nvidia shares rose over 150% since the beginning of 2024, while Apple shares only rose 6% year-to-date (YTD), according to Nasdaq data.
Nvidia and Apple price, YTD chart. Source: TradingViewNvidia has also been outperforming Apple shares in the short term. On the monthly chart, Nvidia’s price rose 34%, while Apple stock only rose slightly over 7%.
Nvidia is the world’s largest chip manufacturer. The rise of its valuation is driven by the increasing demand for semiconductor chips, mainly due to artificial intelligence (AI) algorithms.
Related: Robinhood to buy Bitstamp crypto exchange to enable institutional trading in US
Nvidia is down 0.25% in pre-market trading ahead of the 10-to-1 stock split
Nvidia shares took a plunge in pre-market trading on Monday ahead of the stock split, which will start trading on June 10.
Nvidia was trading at $120.89 as of 11:40 am UTC, down 0.25% in pre-market trading. However, Nvidia shares rose over 10% during the past five days, according to Yahoo Finance data.
Nvidia/USD, 5-day chart. Source: Yahoo FinanceThe chip manufacturer has become the fifth “Magnificent Seven” stock to split since 2022. Other firms that performed stock splits include Apple, Tesla, Amazon and Alphabet.
While the stock split could bring increased retail interest, it could also introduce additional volatility, according to Adam Coons, the chief investment officer of Winthrop Capital, who told Yahoo Finance:
“They can be a little bit more quick and emotional with their buying and selling decisions, so that can lead to heightened volatility as you start to dilute the institutional buyers,”
Related: Iggy Azalea’s MOTHER memecoin surges 30% on mobile company announcement
Will Nvidia flip Apple to become the world’s second-largest company?
Nvidia reached a $3 trillion market capitalization last week, driven by surging demand for semiconductor chips.
On June 5, Nvidia briefly surpassed Apple as the world’s second-most valuable firm, before dipping back into third place. The $3.01 trillion valuation represented a new all-time high for Nvidia, which is currently back to a $2.97 trillion valuation.
Largest companies by market cap. Source: CompaniesMarketCapReaching the $3 trillion milestone is a “seismic event” for both Nvidia and the artificial intelligence industry, according to Gurps Rai, the CEO of droppGroup. Rai told Cointelegraph:
"Nvidia will continue its exponential growth for the time being and overtake Apple, as we witness a new era where AI-centric companies don’t just participate but dominate. This current shift will mirror the tech takeover in the Fortune 500, where the technology companies of today supplanted industrial giants.
Nvidia’s graphical processing unit chips are the go-to hardware solution for developing AI applications.
Leading AI development firms like OpenAI, Google and Microsoft all use Nvidia chips for AI development, driving demand for the chip manufacturing giant.
Nvidia’s price surge will continue to be propelled by the demand for AI-driven applications, according to Ilan Rakhmanov, the founder of ChainGPT Foundation. He told Cointelegraph:
"Nvidia’s GPUs enable the rapid processing of massive datasets, which is fundamental to AI-driven companies. Their stock has shown exponential growth this year and will continue to do so as adoption of AI grows rapidly."
Magazine: Caitlyn Jenner meme coin ‘mastermind’s’ celebrity price list leaked
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin
MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.
Gold loses luster as institutional demand fuels bitcoin price surge, analysts say
Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.
SEC is 'engaging' Solana ETF applicants: report
SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.
Shiba Inu Developer Says SHIB Is No Longer a Memcoin