Nvidia beats Apple with stunning $3 trillion market cap

Nvidia has achieved a significant milestone, reaching a market cap of $3.01 trillion, surpassing Apple and becoming the second-most-valuable company in the U.S. stock market, just behind Microsoft. Nvidia's meteoric rise can be credited to its dominant position in the AI technology sector, specifically as a leading supplier of AI accelerators, holding between 70% and 95% of the market share. The company's growth trajectory has been remarkable, hitting milestones of $1 trillion in May 2023 and $2 trillion in February 2024. Nvidia's first-quarter earnings reported a staggering $26 billion, more than triple compared to the previous year.

Nvidia's focus on AI technology has played a crucial role in its rapid market cap growth. By becoming the predominant supplier of AI accelerators, Nvidia has cornered a substantial portion of the market, leading to increased demand for its chips. This strategic focus has driven its stock prices higher and resulted in significant revenue increases, solidifying its position as a tech giant.

Nvidia's journey to becoming a $3 trillion company is a testament to its innovation in both the gaming and AI sectors. Originally renowned for its powerful gaming GPUs, Nvidia leveraged its expertise to dominate the AI chip market, which has seen a surge in demand from various industries looking to employ artificial intelligence for enhanced performance and data processing.