Nvidia surpasses Apple with 25 times better performance leading up to a 10to1 stock split

Update as of June 10, 1:15 pm UTC: Recent updates now feature statements from Gurps Rai and Ilan Rakhmanov.
Nvidia, a chipmaker based in the United States, has surpassed Apple’s stock price performance by more than 25 times since the start of 2024, as it prepares to implement its eagerly awaited 10-to-1 stock split.
Since the beginning of 2024, Nvidia’s shares have surged by over 150%, while Apple’s shares have only seen a 6% increase year-to-date (YTD), according to Nasdaq data.
Nvidia has been consistently outperforming Apple in the short term as well. On the monthly chart, Nvidia’s stock price has risen by 34%, whereas Apple’s stock has only experienced a slight increase of around 7%.
Nvidia holds the distinction of being the largest chip manufacturer globally. The escalation of its valuation is attributed to the growing demand for semiconductor chips, primarily fueled by artificial intelligence (AI) algorithms.
Nvidia’s stock price experienced a decline in pre-market trading on Monday ahead of the commencement of the stock split, scheduled to begin trading on June 10.
As of 11:40 am UTC, Nvidia was trading at $120.89, registering a 0.25% decrease in pre-market trading. Despite this, Nvidia’s shares have climbed over 10% in the past five days, as per Yahoo Finance data.
The chip manufacturer has now become the fifth company in the “Magnificent Seven” to undergo a stock split since 2022. Other companies that have executed stock splits include Apple, Tesla, Amazon, and Alphabet.
While the stock split could attract heightened interest from retail investors, it might also introduce additional volatility, as noted by Adam Coons, the chief investment officer of Winthrop Capital, in a statement to Yahoo Finance.
Nvidia recently achieved a market capitalization of $3 trillion, driven by the soaring demand for semiconductor chips.
On June 5, Nvidia briefly overtook Apple to become the second most valuable company globally, before slipping back to third place. The $3.01 trillion valuation marked a new record high for Nvidia, which currently stands at a $2.97 trillion valuation.
Reaching the milestone of $3 trillion signifies a significant moment for both Nvidia and the AI industry, as expressed by Gurps Rai, the CEO of droppGroup, in a statement to Cointelegraph.
Nvidia’s graphic processing unit chips are the preferred hardware solution for AI application development.
Major AI development companies such as OpenAI, Google, and Microsoft rely on Nvidia chips for AI development, boosting demand for the chip manufacturer.
The surge in Nvidia’s stock price is anticipated to persist due to the continued demand for AI-driven applications, according to Ilan Rakhmanov, the founder of ChainGPT Foundation, as stated to Cointelegraph.