Nvidia shares volatile amid doubts about AI build-out pace
Apple’s market capitalization hit $4.9 trillion on Friday, moving past Nvidia’s $4.8 trillion valuation, according to The Wall Street Journal. The Wall Street Journal reported that the shift reshuffles Silicon Valley’s hierarchy as the market continues to re-evaluate companies vying for artificial-intelligence domination.
Nvidia had been the dominant market force over the past year as chip scarcity drove an unprecedented premium on hardware and tech giants scrambled for its products, the Journal reported. The company was the first U.S. company to reach the $4 trillion and $5 trillion market cap milestones, but its stock has proved volatile amid doubts that the AI build-out can continue at last year’s pace.
Apple’s climb accelerated after it reported March-quarter sales that showed the iPhone 17 lineup continues to be a hit, the Journal reported. The results reinforced investor confidence in Apple’s consumer ecosystem, which the Journal described as providing opportunities for the company to sell high-margin add-ons from App Store apps to storage.
Apple regained the crown despite a stock dip late in June, after the company spoke of a surge in the cost of memory and storage chips. The Journal reported that shares fell about 6% when Apple responded by raising prices on Macs and iPads, a prelude to similar price hikes expected for the iPhone. The newspaper reported that Wall Street swiftly dismissed fears that more expensive devices could drive customers away.
Alphabet is close behind Apple and Nvidia with a market capitalization of $4.2 trillion, according to the Journal. Microsoft, Amazon, and Taiwan Semiconductor Manufacturing trail with valuations below $3 trillion each.
The Wall Street Journal noted that the hierarchy remains far from secure, with SpaceX’s $2 trillion blockbuster initial public offering in June and highly anticipated listings from generative AI front-runners Anthropic and OpenAI on the horizon.