Nvidia (NASDAQ: NVDA) Share prices have soared in recent years and are up a whopping 1,900% since the start of 2020. The reason is simple. The technology company has established itself as the chip company for artificial intelligence (AI), with an 80% market share. Nvidia’s graphics processing units (GPUs) are the fastest available, and companies launching AI projects are rushing to buy these and other Nvidia AI products and services.
All of this has resulted in huge earnings gains for Nvidia, with revenue and net income rising by triple digits quarter after quarter. In the most recent quarter, sales hit a record high of $26 billion and the company announced a 10-for-1 stock split. Meanwhile, Nvidia shares continue to rise, even rising above $1,000. As a result, Nvidia did something it has never done before.
Nvidia and Apple
This very first event has to do with market value. For the first time, Nvidia’s market capitalization reached $3 trillion, which is higher than $3 trillion Apple making it the second largest company in the US Microsoft. That happened earlier this week, and Nvidia’s value has fallen slightly since then, putting it back slightly behind Apple.
But this movement is not just a random event. It says something about where Nvidia is today and what might happen in the future. It’s part of the overall momentum that’s been gaining momentum since last year, when Nvidia became a $1 trillion company. Earlier this year, Nvidia’s market value topped $2 trillion, and now the company is showing it has what it takes to share the spotlight with stock market giant Apple.
This trend is positive because it is accompanied by Nvidia’s earnings growth and clear long-term forecasts – solid reasons for continued market value appreciation.
As previously mentioned, Nvidia has become a major player in the AI ​​market, offering companies tools that can determine whether or not their AI projects are successful. Today, Nvidia’s H100 is the best chip on the market, but the company isn’t sitting on its laurels and has instead promised rapid innovation. It’s preparing to ship the H200 this quarter – which nearly doubles the inference performance of the H100 – and later this year Nvidia will release the long-awaited Blackwell architecture and its best-performing chip yet.
In addition to chips, Nvidia also offers a range of other tools and services, including an enterprise software platform that streamlines the development of AI programs. And Nvidia’s products and services are available through all public cloud providers, making access easy for any potential customer.
Ask about Nvidia products
More good news, giving us a glimpse into the coming months, is that Nvidia says demand for its products is outpacing supply – and the company expects this to continue next year. This gives us reason to be optimistic about near-term gains. And Nvidia’s market position, continued innovation, and overall growth forecasts for the AI ​​market give us reason to be optimistic about earnings in the long term as well. Analysts expect the AI ​​market to reach $1 trillion by the end of this decade, so we’re still in the early days of this growth story.
Excitement over Nvidia’s June 7 stock split may have pushed its shares higher this week, boosting the company’s market value. But stock splits are mechanical operations that aren’t a real catalyst for stock performance, so this won’t be a driving force for sustained gains. That’s not a problem, though, because the revenue should be doing that work.
With Nvidia’s strong earnings numbers today and the prospects for more of the same in the future, the company could maintain its market value position alongside Apple – a company that has also built its reputation on innovation, being a leader in its field and delivering results has achieved long-term profit growth.
Whether Nvidia’s market cap stays below $3 trillion and goes slightly below Apple’s or higher, I view this tech giant as one of the biggest growth companies today – and a solid stock to buy and hold for the long term .
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Adria Cimino has no positions in the stocks mentioned. The Motley Fool holds positions in and recommends Apple, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
Nvidia just did something that has never been done before and was originally published by The Motley Fool
