Apple, on the other hand, has seen a slowdown in its sales growth, with its shares only increasing by about 5% this year. The company recently reported a 4% drop in overall sales and a 10% fall in iPhone sales from the previous year. Despite being the first company to reach $1 trillion and $2 trillion market caps, Apple was surpassed by Microsoft earlier this year. Nvidia's stock has been more volatile than Apple's, but its shares have skyrocketed by more than 3,290% over the past five years as its AI business has grown.
Key takeaways:
- Nvidia surpassed Apple in market cap, becoming the second-most valuable public company after Microsoft, with a market value of $3.019 trillion.
- Nvidia's shares have risen over 24% since its first-quarter earnings report in May, and the company hit a $3 trillion market cap milestone after shares rose over 5% on Wednesday.
- The company has an estimated 80% market share in AI chips for data centers, and its data center business revenue rose 427% from a year earlier to $22.6 billion, accounting for about 86% of the company's overall sales.
- Apple, on the other hand, has seen a stall in sales growth, with overall sales dropping 4% and iPhone sales falling 10% from the year-ago period. Apple also faces strategic questions and issues about demand in China, manufacturing, and mixed reactions to its new virtual reality headset, Vision Pro.