Nvidia outperforms Apple by 25x ahead of 10:1 stock split.
US chipmaker Nvidia has outpaced Apple’s stock price by more than 25 times since early 2024 as its much-anticipated 10-for-1 stock split begins trading soon.
NVIDIA (NVDA) stock is up more than 150% since the beginning of 2024, while Apple (AAPL) stock is up just 6% year-to-date (YTD), according to Nasdaq data.
Nvidia outperformed Apple stock even in the short term. On the monthly chart, Nvidia’s price is up 34%, while Apple stock is up just over 7%.
Nvidia is the world’s largest chip manufacturer. The rise in stock prices is mainly due to increased demand for semiconductor chips due to artificial intelligence (AI) algorithms.
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Nvidia fell 0.25% in pre-market trading ahead of a 10-for-1 stock split.
Nvidia shares fell sharply in pre-market trading on Monday ahead of the stock split, which begins trading on June 10.
Nvidia is trading at $120.89 as of 11:40 a.m. UTC, down 0.25% in pre-market trading. However, Nvidia shares are up more than 10% in the past five days, according to Yahoo Finance data.
The chipmaker becomes the fifth “Magnificent Seven” stock to split since 2022. Other companies that have performed stock splits include Apple, Tesla, Amazon, and Alphabet.
Stock splits could increase interest in retail stocks, but they could also introduce additional volatility, Adam Coons, Winthrop Capital’s chief investment officer, told Yahoo Finance.
“They may be a bit quicker and more emotional with their buying and selling decisions, so if you start diluting institutional buyers, you could see higher volatility.”
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Will Nvidia overtake Apple and become the world’s second largest company?
Nvidia achieved a market capitalization of $3 trillion last week thanks to surging demand for semiconductor chips.
On June 5, Nvidia briefly surpassed Apple as the world’s second most valuable company and fell to third place. The $3.01 trillion valuation represents a new all-time high for Nvidia, which is now back at a $2.97 trillion valuation.
Nvidia’s graphics processing unit (GPU) chips serve as hardware solutions for developing AI applications.
Leading AI development companies such as OpenAI, Google, and Microsoft all use Nvidia chips for AI development, driving demand for the chip manufacturing giant.
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