US chipmaker Nvidia has outperformed Apple’s stock price by more than 25 times since the start of 2024, as its long-awaited 10-for-1 stock split is set to begin trading.
Shares of Nvidia (NVDA) are up more than 150% since the start of 2024, while shares of Apple (AAPL) are up just 6% since the start of the year, according to data from the Nasdaq.
Nvidia has also outperformed Apple stock in the short term. On the monthly chart, Nvidia’s stock is up 34%, while Apple’s is up just over 7%.
Nvidia is the world’s largest chipmaker. Its high valuation is due to the growing demand for semiconductor chips, mainly driven by artificial intelligence algorithms.
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Nvidia shares fell 0.25% in premarket trading ahead of a 10-for-1 stock split
Nvidia shares fell in premarket trading Monday, ahead of the stock split, which begins June 10.
Nvidia was trading at $120.89 as of 11:40 UTC, down 0.25% in pre-market trading. However, Nvidia shares are up more than 10% over the past five days, according to data from Yahoo Finance.
The chipmaker became the fifth “Magnificent Seven” stock split since 2022. Other companies that have carried out stock splits include Apple, Tesla, Amazon and Alphabet.
While a stock split may generate increased retail interest, it may also create additional volatility, according to Adam Kunz, chief investment officer at Winthrop Capital, who told Yahoo Finance:
“They may be a little quicker and more emotional in their buying and selling decisions, which can lead to increased volatility as you start to soften up the institutional buyers.”
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Will Nvidia allow Apple to become the second largest company in the world?
Nvidia’s market value reached $3 trillion last week, driven by growing demand for semiconductor chips.
On June 5, Nvidia briefly overtook Apple as the world’s second most valuable company, before falling back to third place. The $3.01 trillion valuation represents a new all-time high for Nvidia, which is currently back at a $2.97 trillion valuation.
Nvidia’s graphics processing unit (GPU) chips are used as an ideal hardware solution for developing AI applications.
Leading AI development companies such as OpenAI, Google, and Microsoft all use Nvidia chips for AI development, increasing demand for the chip manufacturing giant.
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