By Nvidia’s stock is on the rise, heading for a remarkable sixth consecutive day of gains. The artificial-intelligence chip giant has made waves by surpassing Saudi Aramco to claim the title of the world’s third most valuable company, with its sights set on tech behemoth Apple.
Steady Climb
Early Thursday trading saw Nvidia shares up by 2%, reaching $904.53. The previous day, the stock surged by 3.2%, hitting $887 and lifting its market capitalization to an impressive $2.22 trillion. In comparison, Apple’s market value dipped to $2.61 trillion with its stock at $168.72, down by 0.2% in early Thursday trading.
Closing the Gap
Although there is still a substantial difference of nearly $400 billion between the two companies’ valuations, they are now closer than ever before. Initially valued at $1.33 trillion more than Nvidia at the start of the year, Apple has subsequently seen its lead decrease. A year ago, Apple held a formidable $1.83 trillion lead. The divergence in their stock performance has been stark in 2024: Apple has experienced a 12% decline this year, while Nvidia has soared by 79%.
Apple Falters
Apple faced additional challenges this week when reports emerged that iPhone sales in China plummeted by 24% in the first six weeks of the year, putting further pressure on the tech giant’s shares.
Nvidia Soars as Apple Falters
Nvidia: Riding the Wave
The momentum is very much with Nvidia—its shares have climbed for five consecutive days through Wednesday, up 14% in that period. In contrast Apple has declined for six straight days, falling more than 7% over that time.
Sky’s the Limit for Nvidia
While Nvidia looked set to top the $900 level at Thursday’s open, Mizuho analyst Vijay Rakesh thinks the shares can hit $1,000 as he hiked his price target on the stock from a previous target of $850.
Apple Stays Stagnant
Apple’s shares were flat shortly after the open Thursday. The chip sector was performing better, though, as Intel rose 2%, Micron Technology was 2.6% higher, and Advanced Micro Devices rose 0.9%.
Directors Cash Out Amid Rally
Separately, two Nvidia directors sold about $180 million in shares in recent days, cashing in on the recent rally. Tenche Coxe, a board member since 1993, sold 200,000 shares, while Mark Stevens, a director since 2008, sold 12,000 shares, according to filings.
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